Fellow citizens,

our beloved brethren in the North and compatriots residing overseas,

I join all Koreans in celebrating the 67th anniversary of liberation today.

I pay profound tribute to our patriotic forefathers who gave their precious lives to win back the country, to patriots who devoted themselves to founding the nation, and to our men and women in uniform who sacrificed themselves while fighting during the Korean War or serving on the frontlines protecting national security.

I extend my gratitude and sympathy to the decorated patriots who fought for the nation’s independence and families of fallen heroes.

My heartfelt congratulations and appreciation also go out to the members of Team Korea who made a triumphal return from the London Olympics and all the Korean people who rooted for them with one heart throughout the night.

It has been 64 years since Korea made its debut in the London Olympic Summer Games of 1948.

Even though the Government was yet to be established, our athletes could travel by ship and participate in that Olympics with the help of donations from the public; they won two bronze medals. This time in London again, Korea became the fifth strongest sports powerhouse.

Each and every one of our 245 athletes touched the hearts of all Koreans.

I am very proud to be a citizen of the Republic of Korea.

The Republic of Korea has thus far made remarkable prog

ress not only in sports but in all sectors, which is unprecedented in world history.

Korea has taken on challenges with indomitable determination and worked hard to enter onto the center stage from the periphery of the international arena.

Reaching beyond industrialization and democratization, the country achieved an information-based society and now stands side by side with advanced nations.

This accomplishment is not something we took away from someone else through force. It is the fruitful result we proudly harvested with our own hands through perseverance, sacrifice and hard work.

I pay my limitless respect to all Koreans who pulled off such achievements with all their efforts.

Fellow Koreans,

In my inaugural address in 2008, I declared the “first year for the advancement of the Republic of Korea.” Marking the 67th Liberation Day today,

I assert that the Republic of Korea has proudly joined the ranks of advanced countries.

The very people who were clothed in rags and starving under colonial exploitation, the land horribly ravaged by war, the divided nation that was once the poorest in the world  carved out the Republic of Korea of today with sweat and tears. Some call it a miracle, but there is no such thing.

Patriotism that bound people together with dedication whenever the country was in difficulty; educational zeal that made people teach enthusiastically and study hard no matter how poor they were; and a challenging spirit that caused people never to succumb to any hardship—these three elements were the driving force behind Korea’s development model that astonished the world. They are also the essence of the spirit of liberation that derived from Korea’s long history and culture.

Under the banner of creative pragmatism, my Administration single-mindedly pursued the country’s advancement over the past four and a half years. It was a period when the spirit of liberation was vibrantly demonstrated.

Korea overcame the 2008 global financial crisis in the most exemplary fashion in the world.

Most advanced countries have yet to restore their pre-crisis GDP levels, but Korea’s GDP grew more than 10 percent from the figure before the financial crisis.

Among major countries, only Korea and Germany have witnessed a recovery in employment to the level before the 2008 crisis.

In addition, Korea’s sovereign debt to GDP ratio remains the healthiest among the OECD member countries. Thanks to that fact, Korea’s credit rating rose on two occasions while most countries suffered a downgrade in sovereign ratings.

This year, Korea became the seventh country that has a per capita income of more than US$20,000 and a population of over 50 million.

Over the past several years, Korea has taken a big step toward the center of the global stage. The country is now seizing the global spotlight like never before in its history.

For the first time, Korea became a member of the G20, the premier economic forum in the world. It also became the first emerging and Asian country to host a G20 Summit in Seoul, which it did to great success.

By smoothly coordinating disagreements among major countries and helping alleviate the concerns about the future of the G20, Korea firmly established its position.

When the foreign exchange crisis occurred in 1997, Korea had to ask for a bailout loan from the IMF.

After only 10 or so years, the country took the lead in formulating the IFM governance reform.

The Seoul Development Consensus, which was agreed upon and announced by the G20 leaders, laid out a new strategy for helping developing nations to stand on their own going beyond the simple material aid provided in the past. Watching the leaders of African developing countries thank Korea in tears for its sincere efforts, my heart was touched.

This past March, a Nuclear Security Summit was held in Seoul. Through the Summit, Korea played its part as a consensus builder on global security and helped work out global peace governance, thereby greatly contributing to expediting the goal of building a nuclear-free world.

Joining the Development Assistance Committee of the OECD in 2010, Korea became the only nation in the world since the end of the Second World War to turn into an aid-donor from an aid-recipient country.

Aid supplies from overseas used to be unloaded at the port of Busan, but it has been reborn as a hub port where such aid supplies are being shipped out to other countries in need. In this regard, it is of particular historic significance that the High Level Forum on Aid Effectiveness was held in Busan in 2011.

Participating leaders from around the world expressed astonishment at such a dramatic turnaround.

Korea now ranks third in terms of the number of volunteer workers dispatched overseas, following the United States and Japan.

A countless number of Koreans are putting the spirit of sharing into practice and giving selfless service in many parts of the world ranging from Africa to remote areas in Southeast Asia and South America.

In addition, Korea has been taking the initiative and playing a responsible role in addressing global issues. One of the crucial pending issues facing all humanity is climate change.

As part of the efforts to respond to climate change, Korea worked together with many countries around the world and established the Global Green Growth Institute.

Designed to provide support for developing countries to prepare for climate change, the GGGI was launched as an international organization in Rio de Janeiro, Brazil in June this year with the participation of 16 founding member countries. Through the Institute, the first international organization established at Korea’s initiative, green growth has become an enduring goal for the international community.

Over the years, the Republic of Korea has grown into a greater country, and its global leadership has been further cemented.

My fellow citizens,

Numerous challenges still lie ahead of us. The global economic crisis triggered by the eurozone fiscal crisis is more serious than anticipated. Unless the eurozone swiftly takes drastic measures in a preemptive manner, it is expected to take more time than originally projected for the global economy to turn around.

Because of the global economic slowdown, economic growth in all countries across the globe is plummeting. Korea cannot be an exception given its high foreign dependency. It is worrisome that exports are declining and that the domestic economy is losing vitality.

For its part, the Government is now channeling all its energy and efforts into responding to the current situation. By convening the meeting for emergency economic measures every week and closely taking stock of developments, it is taking thorough measures to revitalize the economy.

All necessary measures are being taken to boost domestic demand as well as to expand exports and overseas plant construction while stabilizing consumer prices.

In addressing the current global crisis, the Government efforts alone will not suffice.

Collaboration of all economic entities, including businesses, is urgently needed. Business leaders are well advised to continuously increase investment and employment without being intimidated.

When all businesses are undergoing tough times, only those willing to risk making new investments will be able to benefit from them when the economy turns around; only they can hope for a new takeoff.

The cooperation of workers is also of cardinal importance. The occurrence of labor disputes in Korea is lower than the OECD average, which is a significant improvement. In the face of the current global economic crisis, however, politically motivated disputes by some labor unions comprised of highly paid workers will hardly win empathy from the public.

Though important political events are scheduled in the coming months, I urge lawmakers to show active bipartisan cooperation in reviving the economy and taking care of the day-to-day lives of the people.

Particularly at a time when the global economy is not performing well, a social environment that encourages businesses to produce more, invest more and employ more is needed.

The Administration and I will place top priority in steering state affairs on resuscitating the economy and stabilizing the lives of the general public; we will do all we can.

A politician has a fixed tenure, yet the duties of taking care of the economy and everyday lives of the public must continue without stopping.

My fellow citizens,

The national income is rising,

but the issue of polarization is coming out in relief.

By the measure of statistics only, the gap between each social stratum has shown signs of improvements since 2008. Still, the everyday lives of low-income families and the middle class remain tough. On top of this, the quality of life of each individual is lagging behind the buildup of national strength. There is a dearth of decent jobs for young people.

Finding a solution to these problems has emerged as a matter of primary concern for leaders of all nations across the world. I, myself, feel a graver sense of responsibility on this matter than anyone else and am giving much thought to the issue without getting a good night’s sleep. 

Last year I put forth ecosystemic development as the goal in steering state affairs. Creating a future where everyone is better off is a pressing task of our generation.

As polarization is being aggravated due to the global economic crisis, it is now impossible to achieve sustainable growth without ecosystemic development.

To create a society where those who fall can get help to stand up and run again, the Government has expanded tailor-made welfare insofar as it did not compromise fiscal soundness and made all-out efforts to create more job opportunities.

The Government has so far intensively supported Meister high schools and specialized high schools in a bid to overcome inflation in higher education, alleviate gaps caused by academic backgrounds and move towards a society where individual abilities come before academic achievement.

As a result, more than 90 percent of graduating students of these high schools landed a job this year.

With the employment of high school graduates recently increasing in a dramatic manner, a positive change is taking place in our society. By keeping this momentum up, the Government will usher in a “new era of employment of high school graduates.”

At a time when global competition is taking place between business ecosystems, going beyond the competitions between businesses, shared growth has become inevitable for business survival.

Though it is understood that a significant improvement is being made in terms of shared growth between SMEs and big companies, there still remains a long way to go. For further improvements, conglomerate culture has to be changed first.

Nations as well as businesses have to adopt a future development strategy based on the simple truth that it is only possible to go a long way when going together.

My fellow citizens,

Only when the economy grows will it be possible to provide welfare benefits and create job opportunities. In the future smart society, creativity is the biggest growth engine, and the source of competitive edge.

It is not an easy task to build a social infrastructure where individual creativity can be exhibited to the fullest, yet that is a must for Korea since it has to continue to advance.

The future era will likely present a big chance for Korea especially well known for its unparalleled zeal for education in the world.

Up until now, quantitative expansion has been the mainstay to uphold the nation’s education. To take off to a greater height, however, it is necessary to nurture creative talent.

We have so far embraced existing technologies and applied them to our use. In the years to come, however, we have to secure original technologies on our own and further foster knowledge industry.

In this connection, the Government has dramatically increased R&D investments even during the global economic crisis.

The aggregate Government R&D budget of the past five years amounted to 68 trillion won, or about US$60 billion. Its average annual increase ranked second in the world following China, and ranked third in comparison to GDP.

The Daejeon International Science and Business Belt as well as the Science and Technology Campuses in Gwangju and the Daegu-Gyeongbuk area are expected to play a pivotal role in advancing the country’s science and technology, further strengthening the nation''s capabilities.

These places will attract the most prominent scientists in the world. The facilities promise to be a breeding ground for creativity and passion to challenge the unknown realm and will contribute not only to the progress of the nation but to all humanity as well.

In fostering the creative potential of the whole society, diversity is more important than homogeneity. In nurturing creativity and innovation, harmonious diversity provides better soil than stereotypical conformity.

Approximately 1.4 million non-Koreans are already living in the Republic of Korea, and their number will continue to increase in the years to come.

For the sake of forging ahead in this age of cultural diversity, the country must transcend the idea of ethnic homogeneity and embrace the value of a multicultural society. In this regard, reinforcing legal and institutional devices will be important, but enhancement of social awareness is more important than anything else.

We have to open our doors more widely and foster an environment where talented people can come from around the world and fully demonstrate their abilities.

Eighty million Koreans,

For South-North relations to develop in a consistent and sound manner, ties between the two sides should first be on a normal footing.

All along, the North Korea policy of this Administration has been solidly based on this recognition.

Superficially, the situation may look different, but in reality, the Administration’s principled North Korea policy is evaluated as beginning to bring about a substantial effect.

Pyongyang has also come to a situation where it has to look straight at reality and consider a transformation. We will carefully watch for the  possible changes.

Denuclearization of the Korean Peninsula was agreed on between the South and North as well as at the Six-party Talks. It has to be strictly complied with as it also constitutes an international obligation under UN Security Council resolutions. On the basis of it, the South, along with the international community, is ready and willing to help the North.

The South is open to inter-Korean dialogue while at the same time being mindful of the human situation in the North.

The ultimate consummation of our liberation consists in national unification. National reunification will be the springboard of a truly greater Republic of Korea.

On the one hand, the Government will strive to open a viable path for coexistence and coprosperity, and on the other hand, it will steadily prepare for unification.

In pursuit of stability and common prosperity in Northeast Asia in addition to better conditions for peaceful reunification, the Government has long been closely cooperating with the United States, China, Japan, Russia, the EU and ASEAN nations.

Unification of the peninsula will also be a great blessing for the neighboring nations as well as all other countries.

My fellow citizens,

Japan is a close neighbor, a friend that shares basic values, and an important partner that we should work with to open the future.

However, we have to point out that chain links tangled in the history of Korea-Japan relations are hampering the common march toward a better tomorrow in the Northeast Asian region, as well as bilateral ties.

Particularly, the issue involving mobilization of “comfort women” by the imperial Japanese military goes beyond relations between Korea and Japan. It was a breach of women’s rights committed during wartime as well as a violation of universal human rights and historic justice. We urge the Japanese Government to take responsible measures in this regard

Korea will proactively accommodate its neighbors and other members of the international community and cooperate with them on a higher dimension. This kind of well-rounded stance is necessitated by the fact that Korea has now emerged as a leading nation. It is also necessitated by the need to manage and further advance its global networks. 

My fellow Koreans,

The world has now entered an age of radical change in the face of the worst economic crisis since the Great Depression of the 1930s.

The crisis, which started in the advanced Western nations that have led the world for the past hundreds of years, is spreading to other economies. The center of global economic power is shifting as well.

With China and India rising rapidly, the main axis of the world economy is moving toward Asia. The Northeast Asian region surrounding the Korean Peninsula is about to undergo seismic change in earnest.

At this important juncture, Korea has just entered the ranks of advanced nations breaking away from the group of late starters that it had long belonged to.

From now on, it is not viable to follow others.

Our country is now in a position to open a path on its own. We have to develop "a Korean route" that no one else travelled before.

We have to be equipped with new determination and heightened awareness so that we will successfully take up the role of a frontrunner. The strength that we have had so far as a runner-up may ironically become a stumbling block as a frontrunner.

We have to boldly shed the undesirable things of the old, while galvanizing unchanging virtues. We have to start thinking on a different dimension. 

In order to open a new horizon, we need to think more creatively, gain wisdom that can see through the future and have a broad-minded spirit of cooperation.

Preparing for the future on the basis of these principles, we will have to faithfully carry out the role of a global leader. To this end, we need to dream a new dream and ignite our passions anew.

The nation will take a new leap forward, going even higher than our historic success. While accepting world standards, the nation will set new global standards. While maintaining self-respect, the nation will gracefully contribute to the wellbeing of the world. While having a relatively small land, the nation will maintain a big stature. Building up this kind of nation is a historic mission placed upon the Korean people and me.

I have complete trust in the Korean people.

The Korean people can do it.

We can change the impossible into the possible, and once again write a new chapter in the history.

Fellow citizens,

The Administration and I will do all we can to solve pending economic issues, including creation of more jobs and curbing inflation.

The Administration will also strive to safeguard socially vulnerable individuals by cracking down on school violence, illegal loan practices, sexual violence and other crimes.

The Government will do its utmost to fairly manage the presidential election scheduled for December. I hope the election will prove to be an occasion where Korean political culture is enhanced one step higher.

In order to establish a Greater Korea, I will continue to work ever more faithfully along with the Korean people until the last day of my term in office.

Fellow citizens,

I thank you all very much.