President Lee Jae Myung on Tuesday called for bold policy measures backed by expansionary fiscal spending and productive corporate financing to increase the nation's economic growth potential.
Lee made the remarks during a Cabinet meeting, pointing to the steady decline in the country's potential growth rate -- the rate an economy can sustain without generating excessive inflation -- under his predecessors.
"The potential growth rate has generally fallen by about 1 percentage point. Our government must become the first to reverse this trend," he said.
He proposed a comprehensive strategy encompassing new technologies, innovation support, regulatory reform, industrial restructuring and talent training, urging officials to prepare "bold solutions unbound by any limitations."
Lee also cited signs of short-term economic recovery in July, which he said was driven by cash handouts, but stressed the need for more fundamental policies to boost long-term growth.
The Cabinet meeting also reviewed a new labor law, the so-called yellow envelope law, aimed at strengthening the bargaining rights of subcontract workers, and an amendment to the Commercial Act to enhance the rights of minority shareholders.
The latest revision to the Commercial Act mandates the adoption of a cumulative voting system at large listed companies with assets over 2 trillion won ($1.45 billion) and expands the separate nomination of audit committee members from one to at least two.
"These two bills are intended to improve transparency in corporate management and promote co-prosperity between labor and management, ultimately supporting overall economic growth," Lee said.
He called on all market participants to demonstrate mutual respect and cooperation, and urged the government to ensure thorough follow-up measures to address any side effects from the new legislation. (Yonhap)
