Yoon remains committed to free markets and chip support

"We have restored common sense," President Yoon Suk-yeol sai. "We have abolished wrongful economic policies, such as income-led growth."

President Yoon Suk-yeol taking questions from the press at the president's office in Yongsan, Seoul, Wednesday. [JOINT PRESS CORPS]

The president remains committed to putting the private sector in the lead and shifting away from the government-led growth promoted by his predecessor.

Yoon Suk-yeol made the comments during a press conference held to mark his first 100 days in office.

He also stressed his earlier commitments to downsize the public sector while fully supporting semiconductor companies and reviving nuclear power generation.

"We have restored common sense," Yoon said on Wednesday in opening statements. "We have abolished wrongful economic policies, such as income-led growth, while normalizing the economy to be centered on the private sector, the market and the average person."

He said policies have been changed to support the private sector by guaranteeing autonomy and encouraging the private sector to pursue innovation on its own.

"I think the government's role is to support systems where the market operates efficiently and fairly while implementing market policies that reduce risks and achieve a stable balance so that the economic participants and companies can maximize their capacity autonomously and creatively," Yoon said.

He stressed the deregulation the government has pursued and the recent tax reforms that it announced, including the lowering of maximum corporate tax from 25 percent to 22 percent.

"We've normalized the tax system," Yoon said. "We have made changes to the corporate tax so that the international competitiveness of companies will be raised while expanding incentives for investment and jobs."

He stressed the government's full support of chip and biohealth companies and space exploration, citing the recent successful launching of Nuri.

Nuclear energy production, which was decimated by the previous administration, is also a priority.

"We have revived our nuclear energy industry to the world's best by getting rid of the nuclear phaseout policy, which was one-sided and based on ideology," Yoon said.

He promised that the government will do all it can in helping Korean nuclear energy companies in expanding overseas.

On the labor union issue, Yoon said while he will allow some room for negotiation, he stressed that the government will follow the law strictly if there are any actions that break the law.

"The current labor law system is an agreement that the public has made in solving foundational labor and management conflicts," Yoon said. "Because it is an agreement that has already been made, I believe it is important to try to strictly follow it."

He said the Police Bureau will not immediately be activated the moment the law is broken as it needs time for negotiation. However, if all fails, there is no other choice but to follow the law.

"Such a culture should be established," Yoon said.

The president also promised his full commitment to winning the Busan World Expo bid for 2030.

"There is no other way but to convince each and every country one by one," Yoon said. "And it is clear that the Saudis are in a more advantageous position when it comes to costs, which is far more than we can handle."

"However, an expo is where countries can most effectively advertise their products, and in that sense we have the capacity and the infrastructure far better than the Saudis."

He stressed Korea's past experience in hosting major global events, including the Olympic Games and smaller expos.

"Because the economic effect is so huge, it is an event we can't give up on," Yoon said. "We have to do our best."

The country has been faced with the triple threats of rising inflation, high energy prices and a weakening won against the dollar.

Despite Yoon's effort, the economic indicators have been unfavorable, as inflation is at 24-year highs and trade deficits have been reported for four straight months.

Yoon has been reversing the economic policies of President Moon Jae-in, in which income-led growth was the centerpiece. Under the policy, growth was to be stimulated by increasing the wages of workers.

Some elements of the program were unpopular, especially the sharp increase of the minimum wage. The wage increased 42 percent during Moon's administration, and small businesses were hit hard.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]