President Lee Jae-myung instructed his aides on the 14th to take proactive measures for domestic demand revival, saying, 'Isn't a second domestic demand revitalization necessary again?' This has led to speculation that he hinted at the possibility of a supplementary budget. However, the presidential office drew the line, saying, 'We need to think about measures starting now.'
During a senior aides meeting chaired at the presidential office that afternoon, President Lee said, 'To establish a stable growth foundation in the rapidly changing trade order, fostering a strategy for a recovery in the domestic market through consumption is essential,' adding, 'We must ensure that this recovery movement in consumption does not stop.'
President Lee further requested, 'I hope more citizens can participate in the "local revitalization mutual consumption promotion measures" prepared at the government level,' and urged that proactive measures for domestic demand revitalization utilizing the long Chuseok holiday in October and the APEC summit at year-end be devised.
Regarding the people's livelihood recovery consumption coupons, President Lee noted, 'The effects are gradually appearing,' and reported, 'The consumer sentiment index recorded its highest level in four years in July. It is said that 55.8% of small business owners have seen an increase in sales.'
The Ministry of Economy and Finance also stated in its August edition of the 'Recent Economic Trends' (Green Book) released that day, 'There are positive signs of future economic recovery as consumption is turning into an increasing trend due to policy effects.' It analyzed that the expectation for the issuance of the people's livelihood recovery consumption coupons seems to have led to an uplift in consumption.
In response to President Lee's remark about the 'need for a second domestic demand revitalization,' discussions about the possibility of a supplementary budget or the designation of October 10 as a temporary holiday, coinciding with the Chuseok holiday, have been mentioned. If October 10 is designated as a temporary holiday, it would enable a 10-day long Chuseok holiday from Friday, October 3, which is the National Foundation Day, to Sunday, October 12, without taking additional leave. Previous governments have also designated temporary holidays to stimulate domestic consumption.
In response, the presidential office stated that there have been no discussions on the matter.
Lee Gyu-yeon, the chief of public relations and communications at the presidential office, responded during a related briefing in the afternoon to the question, 'Was the idea of an October temporary holiday considered?' by saying, '(This issue) was not discussed in the closed meeting.'
To the question, 'Are they considering the consolidation of a third supplementary budget?' he responded, 'It does not seem to connect that way,' adding, 'There are indicators emerging here and there showing that consumption coupons are helping stimulate domestic demand, so it would be good to continue these policies to improve the domestic consumption environment. We need to consider measures and implementation starting now.'
Meanwhile, President Lee ordered relevant ministries to prepare comprehensive measures for the petrochemical industry, which is facing difficulties due to sluggish global demand and oversupply from China, during the Cabinet meeting that day.
President Lee stated, 'It is said that major corporations are experiencing serious management difficulties due to structural factors such as sluggish global demand and oversupply from China,' and added, 'We must expedite the creation of growth engines centered on new industries while not abandoning these traditional industries in which we have strengths.'
He further instructed relevant ministries to quickly prepare comprehensive measures encompassing the restructuring of the petrochemical business, equipment adjustments, and technology development. The Ministry of Trade, Industry and Energy is expected to announce government plans regarding the restructuring of the petrochemical industry within this month.
He also directed a complete overhaul of the disaster response system. President Lee stated, 'Climate issues are the agenda of all citizens and a critical national task that must be addressed immediately,' emphasizing, 'It is time to comprehensively rebuild the national response system for various types of disasters.' He also said, 'We need to proceed with an incremental manual build-up, infrastructure maintenance, and budget expansion throughout the entire process of prevention, response, and recovery,' urging a prompt discussion at the inter-ministerial level.