Lee says growth recovery is the priority, but welfare has not been abandoned

President Lee Jae Myung has defended next year’s 820.9 trillion-won budget as a recovery plan for an economy he says is facing a growth drought created by the previous administration.

In a post on X, Lee said the government had to focus first on restoring growth. “It is regrettable, but we are now facing a growth drought created by the previous administration, so we must focus more on restoring growth first. That does not mean we have retreated from welfare,” he wrote.

“

It is regrettable, but we are now facing a growth drought created by the previous administration, so we must focus more on restoring growth first. That does not mean we have retreated from welfare.

Lee argued that the choices facing the government were not as simple as abandoning growth to expand welfare. If sustained growth fails to return and the economy reaches zero growth or contracts, he said, inequality could widen further and welfare reductions could follow. He described giving up growth in favor of welfare expansion as impossible, while calling simultaneous expansion of both goals ideal but unrealistic under current conditions.

“

Giving up growth and expanding welfare is impossible, while expanding growth and welfare at the same time is ideal but unrealistic. Inevitably, we must focus on growth now and enlarge the pie.

The president said the government was still working to expand welfare, even if the results were not fully satisfactory. He noted that some critics had accused the administration of proposing an excessive welfare-populist budget and asked the public to give it more time, saying only one year had passed.

The government approved a draft budget worth 820.9 trillion won, 12.8% more than this year. The 93 trillion-won increase is the largest on record in absolute terms and the highest growth rate. Despite the increase, the managed fiscal balance deficit relative to gross domestic product is projected to improve from 3.9% this year to 0.1% next year. The government said it would direct spending toward future growth engines, balanced regional development and young people.

“

I know it is difficult to be satisfied, but we are also working hard to expand welfare. Some have even criticized it as an excessive welfare-populist budget. Only one year has passed, so please give us more time.