President Lee vows economic revival, stronger reform drive

(ATTN: CHANGES to 280,000 from 200,000 the number of jobs to be created in 14th
para, slug)
By Byun Duk-kun
SEOUL, Jan. 2 (Yonhap) -- South Korean President Lee Myung-bak called for all-out
efforts to boost the slumping economy Friday, vowing what he called "diversified"
efforts to create jobs and a stronger drive to reform the country's state-run
businesses.
The call came as part of his four-point policy objectives that also include
improved ties with North Korea, which on Thursday blamed Seoul's
"anti-unification forces" for soured relations between the divided Koreas in an
annual government editorial for the new year.
Lee said his government will continue to deal with the communist nation "calmly"
and "flexibly."
"I am fully prepared and ready to talk with North Korea at any time and to
cooperate as a partner," the president said in his nationally televised new
year's address.
Lee's new year message, however, largely focused on economic reform measures as
he noted the country, as well as the rest of the world, faces an economic crisis
whose end remains unknown.
"As no country and no person was able to accurately predict the start of this
worldwide economic crisis, no one can definitely say when it will end," said the
president.
"There is a forecast that it will start to get better in the latter half of this
year. I will do my best to make sure this positive outlook will come true," he
added.
The most urgent issue at hand, Lee said, was employment.
The president said the government will actively support small and medium-size
firms that try to keep their employees or create more jobs, noting three quarters
of the salaries paid to workers placed on temporary leave due to the slowing
economy will be shouldered by the government.
"This is not a time to criticize without any suggestions for a solution or remain
an onlooker, but to actively join our strengths. We must work with hope and
courage to join all our energies to overcome the economic crisis at the earliest
day possible," Lee said.
He also vowed to pay close attention to the livelihood of ordinary citizens,
saying the government will do its utmost to make sure the quality of life of
ordinary citizens, or people in the lower bracket, is not threatened by the
ongoing economic downturn.
Still, Lee said the government will continue to take stronger reform measures to
shed what he called "excessive weight," including workers at state-owned firms.
"Reforming public firms is aimed at truly giving back the public firms to the
public... Because reforming public firms is truly the way to get rid of excessive
weight in the public sector and create jobs for the private sector," he said.
Defending his 14-trillion won (US$10.7 billion) project to develop the country's
four major rivers by 2011, Lee said the project will create over 280,000 jobs,
more than double the number of jobs that would have been created if the money was
invested in the manufacturing sector.
Turning to inter-Korean issues, the president said it is now time for Pyongyang
to "accurately" understand the changes in the environment and start cooperating
with the South.
"North Korea must now give up its outdated practice of trying to create tension
among South Koreans and become more cooperative," he said.
North Korea has refused to work with the South Korean administration since Lee
was inaugurated early last year, accusing Lee of collaborating with hawkish U.S.
imperialists who have long sought to topple Pyongyang's communist regime.
Virtually all official dialogue between the two Koreas has been cut off, while
the communist North has also implemented stricter border controls, significantly
reducing the number of South Koreans allowed to enter the communist nation for
tourism or business.
The two Koreas technically remain at war since the 1950-53 Korean War ended only
with a ceasefire, not a peace agreement.
bdk@yna.co.kr
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