President Lee Jae-myung on the 2nd said, "We must respond with policies from multiple angles with the mindset that easing polarization will determine the success or failure of state affairs," and said he would actively use "additional tax revenues" to support the younger generation. He intends to deploy fiscal resources to resolve a situation in which the boom in the semiconductor industry and the domestic stock market is detached from the real economy and polarization among young people is deepening.
Presiding over a senior secretaries' meeting at Cheong Wa Dae that day, Lee said, "One of the biggest tasks we must solve while simultaneously creating future growth engines is easing the imbalances and gaps entrenched throughout society."
Lee said, "If we leave 'K-shaped' polarization unattended, productivity falls, potential output is damaged, and even national unity and social stability are shaken," adding, "We must focus all our efforts on strengthening the basic social safety net, forming a fair labor market, revitalizing neighborhood economies, and building an 'asset ladder' for everyone, including young people."
In particular, he said, "I ask that you make every effort to efficiently use the recently expected 'additional tax revenues' to build stable investment resources for future generations." This is the first time Lee has referred to tax revenues projected to exceed expectations due to the boom in artificial intelligence (AI) semiconductors as "additional tax revenues" instead of "excess tax revenues."
◇ Cheong Wa Dae's approach: 'stock boom → polarization → youth issues'
Recently, Cheong Wa Dae has been linking the asset polarization behind the rapid growth of the stock market to "youth issues," issuing several related messages. In political circles, this approach is being viewed in connection with the June 3 local elections. With the 20s and 30s drifting away, it appears to reflect a judgment that, instead of political slogans, the administration must again take the lead on issues directly tied to real life, such as jobs and asset building.
At a briefing at Cheong Wa Dae's Chunchugwan on the 19th, Lee said, "Polarization in the stock market in fact leads to serious asset polarization. This is a major problem and a concern," adding, "The government must make many efforts to ease it." At a Cabinet meeting three days later, he said, "The government must painfully accept the sense of alienation among young people who say that record bonuses or the record KOSPI index are stories from another world to them."
Kim Yong-beom, presidential chief of staff for policy at Cheong Wa Dae, also said at a Kwanhun Club invitational forum on the 24th, "The nation as a whole is becoming wealthier and the growth of (large companies) continues, but young people are not sharing in the fruits of that growth and are being pushed to the margins of society," adding, "We should concentrate excess tax revenues on employment programs for the younger generation and support for asset building."