Good morning, fellow Koreans,

A beautiful season of fresh green has snuck up on us again. Even though all of us have had heavy hearts this spring because of the Cheonan tragedy, I would like to speak about bright and hopeful things today for a change.

Recently, there has been a series of good news about the Korean economy. The gross domestic product in the first quarter of this year grew 7.8 percent from the same period last year. It is the highest growth in seven years since the fourth quarter of 2002. Industrial production grew 26 percent in the first quarter, the highest in a decade since 2000. Capital investment has also risen about 30 percent over the last year. Domestic demand in the same quarter, including private consumption and investment, has almost recovered to its pre-financial crisis level. Our real economy finally has a green light.

Among other things, what pleases me the most is the significant increase of jobs. The creation of jobs is the overriding concern of the public and the top priority of my Administration. The number of jobs has swelled for four consecutive months, and better yet in April, it grew by 400,000, the largest increase since 2005.

It is notable that as many as 300,000 jobs have been created in the private sector. It is truly an auspicious sign that the market is making a gradual turnaround. The number of those permanently employed has increased 780,000 year-on-year, showing enhanced job stability. 

All these have resulted in the unemployment rate decreasing for three consecutive months after peaking at 5 percent in January. The rate has dropped to as low as 3.8 percent this month. On the contrary, the jobless rate in the United States and Europe in March this year hovered at more than 10 percent, and youth unemployment in Spain, in particular, reached a whopping 43 percent.

It is true that there have been many worries about the widening disparity between the haves and have-nots. According to statistics released to the media over the past weekend, income distribution continued to deteriorate from 2003 until the beginning of 2009 when the trend reversed and is now showing signs of improvement. It is fortunate news, indeed.

My administration remains committed to redoubling efforts to make a society where everyone can lead a happy and comfortable life.

Fellow citizens,

The international community, too, is amazed by Korea’s remarkable economic achievement. In a column on April 28, the Financial Times of London complimented Korea by saying, “South Korea seems to have pulled off a textbook recovery,” and “Korea gets full marks for crisis containment.” Moody’s, one of the most conservative credit rating agencies, also upgraded Korea’s sovereign rating to where it had been before the 1997 financial crisis. Citing Korea’s exceptional rebound from the global downturn, the rating firm noted the fact that the Korean Government put in place effective financial and fiscal policies in a swift and appropriate fashion.

As a result, it is expected that overseas borrowing costs will be lowered and direct foreign investment will expand, thereby adding momentum to the country’s economy. In addition, Korea is anticipated to record one of the highest growths among the 30 OECD member nations this year.

It is truly significant given the fact that security threats have escalated since the sinking of the Cheonan and that a handful of advanced countries suffered a plunge in their sovereign ratings.

Fellow Koreans,

The Korean economy has been able to surmount the global financial crisis largely thanks to the confidence and cooperation of the Korean people. I bow in appreciation to all citizens who have shown unwavering confidence in the Government so far.

Still, we cannot afford to let our guard down. Because of the financial crisis in Greece, the European economy has become unstable yet again. Active collaboration on the part of various European countries helped restore economic stability to a certain degree; however, it is premature to sit idly by.

Now, we are living in an era when the global economies are closely intertwined with one another. Therefore, it is impossible for one nation to maintain economic health with its impressive performance alone.

Taking this reality into consideration, the Government set up the Emergency Economy Situation Room, dubbed the War Room, in January last year. Since then, I have presided over the Meeting for Emergency Economic Measures every week to scrutinize economic and financial developments at home and abroad. The Meeting will continue till the economy is fully recovered. I am convinced that, at this critical juncture, we all have to pool our wisdom with a shared vision and move forward with strong determination, thereby helping increase the momentum of economic growth.

My fellow Koreans,

The economy is showing signs of improvement. Nevertheless, it is still worrisome that microbusiness owners and low-income families cannot fully feel the warm, gentle breeze of economic recovery yet. There are also signs of improvement in the job market, but still, many young people are faced with difficulties in landing a job.

Regrettably, local economies are still not performing well. Among other things, the homebuilding sector is going through tough times, adding woes to the local economies. In the years prior to the enforcement of the original sale price ceiling system for apartment units several years ago, there was a sharp increase in the supply of apartment. This is now compounding the stagnation in the construction business.

In a bid to ease the burden on local economies and low-income families, the Government announced measures to help deal with unsold apartments last month. However, it has to be made crystal clear that moral hazards in the home building industry will never be tolerated under any circumstances.

With the Four Major Rivers Restoration Project going into full gear in the latter half of the year, it is expected to create many new job opportunities and revitalize the local economies.

My fellow Koreans,

Home prices, consumer prices and job security are the most important elements in stabilizing the lives of low-income families. I have a firm belief that houses should not be subject to speculation, but that there should be a living space for everyone who wants it. Accordingly, the Government began supplying public apartments that are much cheaper than those in adjacent areas. The supply of such units will continue in the years to come to help directly benefit those who do not own their own houses.

Fortunately, consumer prices are showing signs of stabilization. The Government will make continued efforts to sustain this trend. On top of this, my Administration will exert great endeavors to create jobs, especially for those who have disadvantages in landing a job.

My fellow citizens,

The Government’s job is to do all it can to help people have hopes and dreams about a better future. Riding out the rough waves, the Korean economy is well poised to set sail anew on the vast ocean, brimming with great hopes. The Government will do its utmost to surmount the urgent crisis. At the same time, it will not spare any effort in further strengthening growth potential with an eye to a new leap forward.

I hope the month May, “Family Month”, brings great joy and happiness to you and your families. 

Thank you very much.