A sound economy means a New Economy free of unwarranted controls and protection - an economy which guarantees self-regulation and fair competition and encourages the private initiative and creativity necessary for economic revitalization. The economy has been marked by quantitative growth in the past three decades; now it needs qualitative development. In order to develop New Economy, Korea must (1) establish a liberal market system, (2) liberalize financing, (3) decentralize economic power and (4) promote economic reforms.

The New Economy emphasizes concentrated efforts for the renovation of science and technology. In the 21st century, the strength of nations will be measured by the development of science and technology. It is for this reason the new Administration is sharply raising research and development expenditures.

President Kim Young Sam announced on August 12, 1993, implementation of real-name system for all financial transactions to assist in the realization of economic justice and clean government. The new Administration also has a firm position to control speculation in real estate and institute tax reforms.

By effecting all these changes, it is predicted that the inflation rate as measured by the consumer price index will fall to the 3-4 percent range by the end of 1994 from the usual past level of nearly 6 percent, while the balance on current account will shift into the black. The economy as a whole should grow at an average annual rate of 6.9 percent, boosting per capita GNP to US$14,076 in 1998 from US$7,466 in 1993.

A healthy society means a society in which all people work hard and receive just rewards. It is obvious that a clean government and sound economy alone cannot create a New Korea. A healthy society is absolutely required as well. Everyone must spontaneously take responsibility for keeping society healthy. Each and every person must be honest, courageous and dignified.

Peaceful unification is the supreme task for Koreans. the Republic’s Korean national Community Unification Formula envisages a Korean Commonwealth, an interim arrangement designed to build political, economic and military trust and restore national homogeneity, leading to full national integration through free general elections throughout the Korean Peninsula. President Kim will consistently pursue this unification formula, widely regarded as being very realistic. He will, however, flexibly adapt it to changes in the international situation. In a Liberation Day speech on August 15, 1994, he thus prpoposed South-North joint projects for national development, including light-water nuclear reactor construction in the North, once the North Korean nuclear issue is resolved.

Reform backed by the Korean people

The Korean people’s deep support of President Kim’s comprehensive reform agenda has been reflected in the Korean leader’s strong public approval rating. President Kim has fared consistently well in public opinion polls which indicate that his reform policies continue to enjoy the support of a solid majority of Koreans.

Ethics Reform

To maintain the public’s trust, President Kim has pledged to create a corruption-free political environment by establishing high ethical standards for the members of his administration and political party. Symbolizing his strong commitment to this goal on February 27, 1993, just two days after his inauguration President Kim disclosed all of his financial assets to the public, and encouraged all senior cabinet and ruling party figures to do the same. A number of his government’s newly appointed officials were forced to resign for their past unethical financial conduct and President Kim declared that there would be “no sanctuary” from his clean-up campaign. He stressed that the new ethical standards “must be internalized and become a way of life” for all Koreans.

In order to institutionalize the disclosure of public officials’ assets, the existing Public Officials’ Ethics Act as revised in June 1993, and ranking government officials are now required to register and disclosure their assets under this law. As a result of the clean-up drive resulting from the asset disclosure, 1,363 public officials were dismissed for malfeasance and 242 were forced to resign due to improperly acquired wealth.

President Kim’s inauguration brought to an end the deep involvement of the military in Korea’s political arena. Corruption in the armed forces, long a taboo subject, became a focus of the new reform drive. Promotion kickback scandals were uncovered, and a number of senior military officers have been removed from their posts. The Administration has also investigated and taken legal action against defense procurement irregularitites. At the same time, Prsident Kim has moved to depoliticize the government bureaucracy. In particular, he has reformed the nation’s intelligence apparatus, ending its involvement in domestic politics and directing it to focus solely on Korea’s national security concerns.