Lee: "Learn from Europe's Example and Pursue Sustainable Growth... Expand Housing Starts, Consider Credit and Fiscal Support"

President Lee: "Ultimately, Prolonged Low Growth Is Behind Europe's Unrest"
Despite Positive Economic Indicators, He Emphasizes Sustainable Growth
"Expand Investment in Advanced Industries, Foster Domestic Demand, and Actively Deploy Policy Measures

President Lee Jaemyung on the 27th identified prolonged low growth as the root cause of large-scale protests and social conflict in various European countries, stressing that South Korea should "take them as a lesson." He instructed officials to expand housing starts to stimulate domestic demand and revive the construction industry, and to consider fiscal support as well as government-backed credit support if necessary. He also reiterated that the controversy over the head of the Serious Crimes Investigation Agency (SCIA) attending Cabinet meetings was part of the "normalization of abnormal practices."

In his opening remarks at the 46th Cabinet meeting, which he chaired that day at the main building of the Blue House, President Lee said, "Large-scale protests have recently broken out in several European countries, causing serious social turmoil and conflict." He continued, "Various factors contributed to this situation, but the most fundamental cause is ultimately low growth," adding that "as low growth persists, youth unemployment and polarization are worsening, and the fiscal foundation is weakening, shaking the stability of society as a whole to its core."

President Lee: "Invest in Advanced Industries with Expanded Fiscal Capacity"

President Lee Jaemyung speaks at a Cabinet meeting held at the Blue House on the 27th. 2026.10.27 Yonhap News Agency

Large-scale protests have recently taken place across Europe, including in France, Spain, and Italy. Protesters are calling for greater public-sector investment, lower energy prices, and increased housing supply, among other things. However, reforms have stalled in most of these countries because they spend heavily on pensions and social welfare. Taking advantage of this situation, radical protesters have also carried out a series of violent acts, including theft and arson.

While assessing recent economic indicators positively, President Lee noted that the recovery in people's livelihoods remains slow. South Korea's real gross domestic product (GDP) growth rate for the third quarter of this year, according to the advance estimate, was 1.0%, more than three times the Bank of Korea's forecast of 0.3% for the quarter, issued in August. President Lee said, "The Korean economy is delivering very impressive results in terms of its indicators, but the recovery in people's livelihoods is still slow, and gaps in income, assets, and jobs remain." He added, "Above all, young people are facing great hardship because of the overall shortage of opportunities."

He went on to say, "Sustainable growth is essential to addressing these problems," and called for officials to "use the expanded fiscal capacity to increase investment in advanced industries, foster domestic demand, and actively deploy policy measures that allow people to feel the recovery in their livelihoods."

President Lee also noted that South Korea recorded the world's second-largest current account surplus in the second quarter of this year. "It is a historic achievement, larger than the combined surpluses of Germany and Japan, both global manufacturing powerhouses," he said, adding, "But we must not become complacent or satisfied." He urged officials to "devote every effort to improving domestic demand so that the wave of growth can become a huge tide that transforms the lives of everyone."

On Controversy Over SCIA Chief at Cabinet Meeting: "Supervision and Direction Are Exercised in Accordance with the Constitution and Laws"

President Lee Jaemyung speaks at a Cabinet meeting held at the Blue House on the 27th. Oct. 27, 2026. Yonhap News Agency

To this end, he instructed relevant ministries to focus on implementing measures to boost regional economies and neighborhood businesses through the end of the year. He also described the Korea Grand Festival, a national consumer event beginning on the 29th, as "an extremely important national event covering manufactured goods, agricultural, livestock, and fishery products, tourism, and more," and called for the government to promote it actively and encourage participation.

He also directly raised the possibility of fiscal support to increase housing supply and stimulate the construction industry. President Lee said, "We need to speed up public projects that are behind schedule and maximize the number of housing starts." He added, "The housing sector matters both because supply itself is important and because it can help revive the sluggish construction industry, so please consider fiscal support as well as government-backed credit support."

He continued, "We should also pursue effective measures to reduce the cost of living and increase people's purchasing power," stressing that "we have made considerable efforts to stabilize prices and have pursued policies to boost purchasing power, but we need to develop and implement more ambitious policies."

Meanwhile, regarding the SCIA chief's attendance at Cabinet meetings, President Lee dismissed the controversy, saying, "There is much debate over whether it is right or wrong, but let me say again: under the Constitution and the law, all administrative agencies are subject to the President's direct direction and supervision." In response to concerns that this could undermine the political neutrality of law enforcement agencies, he asked, "What does attending an open meeting have to do with political neutrality? Would a Cabinet member make a personal request or issue an improper instruction at a meeting like this?"

President Lee went on to ask, "Was neutrality well maintained when law enforcement agencies did not attend Cabinet meetings in the past?" He said, "It is better to share information in an open meeting; giving instructions separately is more unusual." He added pointedly, "When people are exposed to abnormal practices for too long, they often mistake them for normal, while normal practices come to be seen as abnormal." His remarks suggested that the past practice of keeping law enforcement agencies out of Cabinet meetings was itself wrong.

Remembering Itaewon Disaster Victims Ahead of the Fourth Anniversary on the 29th

President Lee Jae-myung declares the opening of a Cabinet meeting at the Blue House on Oct. 27, 2026. Yonhap News

President Lee also paid tribute to the victims of the Itaewon disaster ahead of its fourth anniversary on the 29th, emphasizing the state's responsibility for public safety. He said, "I pray for the repose of the victims who lost their precious lives, and offer my deepest condolences to the bereaved families enduring indescribable grief and pain." He added, "Protecting the lives and safety of the people is the state's primary duty and the reason for its existence." He continued, "We have experienced many incidents and accidents, including the Sewol ferry disaster and the Itaewon disaster, but we still have a long way to go before everyone can enjoy a safe daily life."

Regarding the Basic Act on Life Safety, which takes effect on December 3, he called it "an important milestone that establishes the people's right to safety as a fundamental right and further strengthens the state's responsibility for disasters and risks," and urged officials to follow up with institutional reforms. In particular, he said, "We must take the lead in building a government that saves lives and a country where daily life is safe, so that the terrible loss of innocent lives due to the state's absence is never repeated."

As the National Assembly's annual audit entered its final stretch, President Lee praised Cabinet members for their hard work. "Watching this year's audit, I would not say everything was done perfectly, and there are areas that deserve criticism, but overall, it was not easy to identify corruption or major policy failures," he said. He added, "We should humbly accept legitimate criticism and address any misunderstandings."

He also called for additional measures to eliminate unfair practices in the public procurement market. After asking Public Procurement Service Commissioner Baek Seung-bo about the results of efforts to improve the system and prevent indiscriminate bidding, President Lee said, "We must completely prevent abnormal practices in which companies with no office, no employees, and no supply capacity win contracts, then transfer the right to supply the goods to another company and pocket only the middleman's margin."

When Commissioner Baek explained that the number of companies participating in bids had fallen by about 84% following the introduction of the relevant measures, President Lee said, "This could waste public resources and become a breeding ground for corruption." He instructed officials to devise fundamental measures to block companies without the actual capacity to deliver goods from bidding.

This content was produced with the assistance of AI translation services.