President Park Geun-hye discussed her policies for the new year concerning inter-Korea relations, her three-year economic innovation plan and public sector reforms, at Cheong Wa Dae on January 12.

"This year is the 70th anniversary of Korea's liberation and a meaningful year for our countrymen," said the president. "This year also presents a golden opportunity to concentrate our strengths on reviving the economy and improving innovation in the country. The government will take advantage of the opportunities to make 2015 a year of hope."

"Since the global financial crisis, the global economy has been in great transition, and international competition is getting ever more fierce," President Park said. "To overcome these challenges, we laid out a three-year plan for economic innovation last year."

President Park said the government will correct improper systems and practices in the lax public sector and in the market and create an economy with a strong foundation. By promoting the creative industries, the government intends to turn the Korean economy into a dynamic, innovative one and achieve a balance between domestic consumption and exports so that the benefits of economic growth will be equally distributed among the countrymen. If everything goes smoothly, Korea will be headed toward achieving a 4 percent potential growth rate, a 70 percent employment rate and a per capita yearly income of USD 40,000.



The president emphasized that, first of all, reforms must be undertaken in four sectors: public, labor, financial and education. President Park said she would build an economy with a strong foundation. The functions of public sector entities that have become unnecessary or overlap due to changes in the environment will be merged or abolished, allowing the government to reorganize based on its core competencies. The president also asked both ruling and opposition parties to conclude issues regarding the pension system for public servants by April, after complementing their reform plan for the extension of the retirement age for public workers and a wage peak system.

In addition, the president asked businesses and the labor sector to come up with comprehensive plans to reform the labor market by March, and to do it with coexistence in mind. The government will also further liberalize academic terms for students so that they can study without being restrained by college entrance exams. It will introduce trial vocational schools similar to the apprentice system in Switzerland so that the education system can be changed to become more practical and to better fit industry's needs. It will also expand support for two-year colleges that have signed employment contracts with businesses.

President Park said the government would expand the creative industries nationwide and industry-wide in order to revive dynamism in the economy. In a bid to support and assist small- and medium-sized enterprises and startup companies, the major players in many creative industries, it will create so-called "creative economy innovation centers." They will feature a one-on-one support system with large companies, and there will be one in all 17 provinces and cities across the country so that smaller, more creative companies can benefit from a one-stop service center.



In order to establish new future growth engines, the president said she would pursue a "manufacturing innovation 3.0 strategy." This would bring innovation to the manufacturing process, including expanding the use of smart factories and developing core technologies related to the Internet of Things (IoT), 3-D printing and big data. With the launch of a "creative village" in Sejong City, the government will distribute smart farm models and develop information and communications technology standards to encourage rural tourism as well as the retail and educational sectors.

In particular, the president said that culture is the core content that continues to provide new power to the creative industries and that it is a spearhead that pioneers new economic territory. The government will create a future growth engine driven by the creative industries and will secure the future.

President Park also talked about her ideas to reduce medical costs and to eliminate blind spots in the nation's welfare program. "The government will continue to lower medical costs, option-related expenses, nursing care costs and the charges related to higher-grade hospital rooms for four major illnesses: cancer, cardiovascular, cerebrovascular diseases and rare, incurable diseases," she said. "For the basic welfare system, we will upgrade the system so that more people can benefit from it and receive better support. Even if their income levels rise, they will be able to receive necessary aid in terms of medical treatment or housing."



Speaking of her vision and direction for the reunification of the Korean Peninsula, the president said, "North Korea needs to come to the table for talks without hesitation. We need to start by reuniting separated families, then improving the quality of life for North Korean citizens and reviving emotional homogeneity between the two Koreas. The two Koreas should talk to each other one-one-one and open their doors for reunification."

"To establish a basis for the development of inter-Korea relations and peaceful reunification, the government will pursue practical dialogue and create routes for cooperation through private sector assistance and cooperation," she said.

Concerning the separated families, the president said, "We cannot delay the issue anymore, considering the old age of the survivors. I hope that North Korea will respond with an open mind so that separated families can unite again around the Lunar New Year holiday in February."

The president also hoped that the two Koreas could celebrate the 70th anniversary of the liberation of Korea together through various joint events.

Later in the Q&A session, the president responded to a question about an inter-Korea summit. She said, "We can meet anybody to resolve the pains of division and come up with ways for a peaceful reunification. We can have a South-North summit if it helps in that regard."

"There are no preconditions," she stressed. "To resolve problems through dialogue, we need a sincere attitude and an open mind."

Concerning the denuclearization of North Korea, President Park said, "This is not a precondition, but if it is not solved, we cannot talk about peaceful reunification. We need to solve the issue through bilateral or multilateral dialogue."



Concerning national security, the president said, "The government will strongly maintain the Korea-U.S. alliance, further solidify the Korea-China strategic cooperative partnership, seek upgraded relations with Japan in celebration of the resumption of diplomatic relations and pursue stable development in relations between Korea and Russia."

Finally, concerning the issue of sexual slavery dating to World War II, the president said, "Victims who were enslaved as 'comfort women' are very old and if there is no quick solution, it will remain as an unsolved issue. Then, it would be a burden on Korea-Japan relations and it would also be a heavy historical burden for Japan."

"We are still trying to come up with solutions that can meet the expectations of the public and the international community," the president concluded.

By Wi Tack-whan, Limb Jae-un
Photos: Yonhap News, Cheong Wa Dae
whan23@korea.kr