Brief Summary of the Last Three Years of the Park Geun-hye Administration
A Great Journey with the People Toward Change and Innovation
A Great Journey with the People Toward Change and Innovation
Brief Summary of the Last Three Years of the Park Geun-hye Administration
Towards a New Era of Hope
In her inauguration speech in February 2013, President Park Geun-hye declared that she would open a “new era of hope.” At the time, both the domestic and international circumstances were dire, making it seem absurd to even talk of “hope.” Following the global financial crisis, the world economy was in a deep recession, and the Korean economy had lost its former vitality. Increased household debt and youth unemployment added to the sense of crisis. It seemed that the Republic of Korea was on the brink of economic collapse. For the three years since, the Park Geun-hye administration has worked tirelessly to keep its promise of opening a “new era of hope” for the people. In the process, the government has fought against the complacency, lack of common sense, and vested interests of Korean society. Now, three years since the Park administration took office, we are confident that the government has achieved more than any of the administrations that came before. The past three years have been full of challenges and crises to overcome. First, the Park administration pursued the “normalization of abnormal practices” with the goal of rectifying outdated
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systems and practices. Soon, constitutionalism was established, and we created a social structure where common sense prevails, thereby defusing the crisis. Determined to normalize the Republic of Korea despite criticism and condemnation, we successfully corrected these “abnormalities.” Furthermore, the government has announced and unremittingly pursued the ThreeYear Plan for Economic Innovation and instituted reforms in four major areas — the public sector, labor, finance, and education. However, the opposition of the privileged class against the reforms was stronger than we expected, and some people even said it was an unpopular policy. Yet, unwavering, we continued to implement our policies with a steadfast sense of duty, determined to get our country back onto its feet following this crisis. The Park administration successfully implemented the civil service pension reform, which had been left on the back burner because everyone believed it was impossible, and managed to lead labor, management, and the government to conclude — for the first time in 17 years — a landmark tripartite agreement. One by one, we will achieve the goals of the reforms in each of the four major areas this year. Once the reforms are fully implemented and institutionalized, the Republic of Korea will be prepared to join the ranks of developed nations. Reform entails suffering, and innovation requires perseverance. And it is thanks to you, the citizens of the Republic of Korea, who continued to believe in and support the government, that we were able to achieve what we have achieved despite the
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difficulty of the circumstances. Now, our country is in the grip of an unprecedented dual crisis of the economy and security. However, thanks to the reforms and economic innovation that have been achieved over the last three years, the Republic of Korea has maintained stability throughout this crisis. Nonetheless, we will remain alert and vigilant. We will hold firm to our resolutions and complete the implementation of the reforms in the four major areas with passion and strength, putting our economy back on track to revitalization. Regrettably, numerous reform laws, which would help us develop reform-based growth strategies, have not yet been passed. Our country has gone as far as the government and the president are capable of taking it, but it is still not enough. We need to go farther. If these laws are delayed any longer, our efforts and the achievements we have made so far might come to nothing. Therefore, we are asking you to express your interest in policy and legislation and show your support for us. The Park Geun-hye administration has come this far based upon the trust of the people. Now, it is your turn to do your part for the future of the Republic of Korea, and for the happiness of the next generation. We promise that we will open a “new era of hope� for you. Thank you.
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Records of a Three-Year Journey Toward a New Era of Hope
1 Established a foothold for the revitalization of the Korean economy through four major reforms ●
The Park administration faithfully implemented its Three-
year Plan for Economic Innovation, which was the most highly evaluated growth strategy among the G20 economies, according to the IMF and OECD. As a result, the Republic of Korea’s sovereign credit rating was upgraded to the highest level in its history, surpassing even that of Japan. ●
With the establishment of the FTA network, including the
Korea-China FTA, Korea’s economic territory grew to become the third largest in the world, despite the sluggish global economy. Korea’s export volume, which had been ranked at seventh largest in the world, increased to become the sixth largest, while Korea’s economy (GDP) also moved up in the ranks, from 13th to 11th place. ●
The public employee pension reform has reduced the
financial burden on Korean citizens by a total of KRW 497
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
trillion, or KRW 19.4 billion daily, for the next 70 years. In addition, through the implementation of a series of reforms among public institutions, Korea’s national debt was reduced by KRW 500 billion — the first reduction of that scale since 2007. ●
A total of 313 public institutions implemented the Wage
Peak system, which will result in the creation of 4,441 jobs for young people this year. Also, following the Great Compromise (Tripartite Agreement) among Korea’s labor, management, and government representatives — the first such agreement in the last 17 years — the Park administration will now pursue labor reforms, which are expected to create 370,000 jobs over the next five years. ●
Full-fledged financial reforms triggered rapid growth of a
new financial industry, leading the number of Fintech startups to increase eight-fold (from 44 to 360) from early 2015 and giving rise to the birth of Internet-primary banks in Korea after 23 years. Internet-primary banks are banking institutions where all banking transactions can be performed on mobile phones or on the Internet 24 hours a day. ●
Through structural reforms of universities, in line with
the changing needs of Korean society, the number of new admissions at universities was reduced by 47,000. In addition, the government is developing solutions for the youth employment crisis and striving to resolve the manpower shortage at SMEs through the implementation of integrated industry-academic apprenticeship programs at 60 high schools and 5,764 companies.
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Records of a Three-Year Journey Toward a New Era of Hope
2 Laid the foundation for job creation through creative economy and regulatory reform ●
The Creative Economy Innovation Centers established in 17
different regions across the nation have fostered 578 startups, supported 541 SMEs, and induced investments totaling KRW 126.7 billion. Furthermore, the model of Korea’s creative economy innovation center has been exported to Brazil and Saudi Arabia. ●
The Republic of Korea is in the midst of the largest startup
boom in history. Between 2012 and 2015, the number of startup clubs at universities increased by 233 percent, while the number of newly founded companies (93,000 companies, representing a 26.4-percent increase) and the volume of venture investment (KRW 2.1 trillion, representing a 69.1-percent increase) recorded the highest values in the country’s history. ●
Based entirely on the voluntary contributions of citizens
of the Republic of Korea (100,000 donors and over KRW 130 billion in donations) the Youth Hope Fund was created. Through the fund, 130,000 jobs will be made available for young people, and 6,300 jobs will be created. ●
The increase in the employment rate of people who found
jobs through the 40 Employment Welfare Plus Centers across the country (22.7 percent) was twice that of the national rate (11.4 percent). The government will focus on increasing the
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
number of Employment Welfare Plus Centers to 100 by 2017. ●
Through regulatory reform, the “only way to increase
investment without extra costs,” the Park administration created the best corporate environment among the G20 economies, and the amount of foreign investment in 2015 was the largest in the country’s history (USD 20.9 billion).
3 Established culture as a new growth engine ●
With the formation of the Culture Creation and
Convergence Belt, a virtuous-cycle ecosystem for the cultural industry, over 53,000 jobs are expected to be created over the next five years. The total amount of cultural exports already surpassed USD 5.7 billion in 2015. ●
To resolve the chronic supply and demand imbalance faced
by budget chain hotels, the government relaxed regulations on the construction of tourism hotels, which are expected to attract KRW 805.5 billion and create over 15,000 jobs in the next two years. ●
Through the first Korea Grand Sale ever, KRW 589.4 billion in
induced production was generated, helping the nation overcome the MERS crisis. In addition, with the implementation of the “Tourism Weeks,” total tourism spending in the spring and autumn of 2015 reached KRW 5 trillion. ●
Between 2013 and 2015, nine items, including the archives
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Records of a Three-Year Journey Toward a New Era of Hope
of the Saemaul Movement, were registered as UNESCO World Heritage assets. Also, programs participating in “Culture Day,” held on the last Wednesday of every month, more than doubled in 2015, showing that culture has become an integral part of people’s daily lives.
4 Established the “Life-cycle Welfare” system, a lifetime social safety net ●
Having taken full responsibility for childcare for infants and
toddlers, the government is now providing childcare subsidies and child support for 2.5 million infants and toddlers up to the age of five. In addition, 14 different types of vaccinations are available, free of charge, for six million children up to the age of 12. ●
As of December 2015, the government is consistently
providing Basic Pension payments to 4.48 million senior citizens every month. Health insurance coverage for dentures and implants has been expanded to include people aged 65 or older, and the government is also providing nursing care service to 20,000 elderly citizens suffering from mild dementia. ●
Through the extension of health insurance coverage
for four major categories of diseases (cancer, heart disease, cerebrovascular diseases, and rare and incurable diseases) that put the greatest burden on patients in terms of treatment costs, a total of KRW 614.7 billion of that financial burden has been eliminated over the last three years.
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Brief Summary of the Last Three Years of the Park Geun-hye Administration ●
For the first time in 15 years, the Basic Livelihood Security
System has been reformed, creating an allowance system customized to the needs of each recipient (July 2015) and increasing the total number of recipients by 330,000 and the amount of cash grants by nearly KRW 50,000 per household. ●
The government has provided a total of 14,000 “New Stay”
apartments — long-term rental housing provided by private companies with a limitation on rental fees. In addition, people applying for “Happy Housing,” created to help secure stable living conditions for young people, faced a fierce competition of 10 to 1 last year. This year, the government will accept a total of 10,000 applications for “Happy Housing” apartments. ●
In 2015, the Park administration expanded the dependable
childcare support system, increasing the number of public childcare centers by 150 and the number of company daycare centers by 93 and designating 272 private daycare centers as “outstanding public-model daycare centers” to receive government subsidies based on their excellence. ●
With the vitalization of the parental leave system, the
number of men going on paternity leave has increased by 42 percent compared to 2014 (from 3,421 to 4,872), and the number of people who found part-time jobs, making it easier for them to balance their work and childcare responsibilities, increased nine-fold (from 139 to 11,056) compared to 2013.
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Records of a Three-Year Journey Toward a New Era of Hope
5 Focused on eradicating corruption and crime ●
For a number of national grant projects, worth a total
of KRW 240 trillion, across 16 policy areas, the government instituted the “Anti-Corruption 4-Vaccine Project,” which is expected to save KRW 5 trillion in taxes in the future. ●
Through the amended “Act on Special Cases Concerning
Forfeiture for Offenses of Public Officials (Chun Doo-hwan Law),” the government is striving to eliminate corruption, reclaiming KRW 60.1 billion of the KRW 167.2 billion obtained by government officials through unlawful activities. ●
Casting the spotlight on corruption and bribery, involving
up to KRW 1 trillion in funds, the government has investigated 12 cases of corruption related to the defense acquisition program and indicted 77 people, including 11 former and current generals. ●
The Public Service Ethics Act of 2014 was amended, and the
Anti-Corruption Act (Kim Yeong-ran Act) was enacted in 2015, creating a solid framework for the elimination of government corruption.
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
6 Reorganized inter-Korean relations based on strong security and a principled stance ●
The Park administration took a hard stance against North
Korea’s provocations, especially its nuclear tests and long-range missile launches in early 2016, by shutting down the Kaesong Industrial Complex. Also, the government is consistently pursuing the Trust-Building Process on the Korean Peninsula as a means of bringing North Korea to the negotiating table. ●
The government successfully reached an agreement for
OPCON transfer, securing an increased role for the Korean military. In addition, the government established a framework for reinforcing its independent defense potential by deciding to adopt key military innovations, such as the KF-X project, which previous administrations had deferred. ●
Since 2011, the benefit rate of basic livelihood allowance
for North Korean defectors has nearly halved to 25.3 percent, indicating that defectors are becoming more capable of supporting themselves. In addition, the government is expanding the capacity for unification internally through various means, such as the launching of the Presidential Committee for Unification Preparation. ●
As the members of divided families are entering their
twilight years, the Park administration has suggested an exchange of a list of names with North Korea to inform the family members on both sides regarding the survival or death of
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Records of a Three-Year Journey Toward a New Era of Hope
such family members. For the first time since 2000, North Korea has provided the dates of death of family members who have already passed away.
7 Strengthened international status of Korea through “Trust Diplomacy,” prioritizing national interests ●
For the first time in 42 years, the Korea-US Nuclear Treaty
was amended (April 2015), allowing Korea to maximize and secure its national interests in terms of the management of spent nuclear fuel, maintenance of a stable supply of fuel for its nuclear power plants, and enhanced promotion of Korea’s export of nuclear power plants. ●
The Korea Air Defense Identification Zone (KADIZ) was
expanded and adjusted (December 2013) for the first time in 62 years, securing a larger buffer zone for the safeguard of Korean airspace. ●
The Park Administration negotiated an agreement that
clearly specified the “responsibility of the Japanese government” regarding the comfort women issue(December 2015), which previous administrations had been unable to achieve, and had even given up on, over the past 24 years. ●
A new Special Measures Agreement was concluded between
Korea and the US (January 2014), stipulating that over 90
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
percent of the Republic of Korea’s contributions to offset the costs associated with the stationing of United States Forces Korea on the Korean Peninsula will be redirected back into the Korean economy.
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Contents
1. Established a foothold for economic revitalization through four major reforms — 25 1-1. Established globally recognized Three-year Plan for
Economic Innovation and achieved the highest sovereign
credit rating in Korean history
1-2. Became country with the third largest economic territory,
sixth largest export volume, and 11th largest GDP in the
world 1-3. Launched public sector reforms through Public
Employee Pension System Reform
1-4. Implemented labor reforms to create 370,000 jobs in
five years
1-5. Accelerated financial reforms with the development of
Fintech and crowdfunding
1-6. Bolstered education reforms by implementing strong
structural reforms for universities and expanding
integrated industrial-academia vocational schools
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2. Made progress toward realization of creative economy and laid the foundation for the creation of jobs for youths — 39 2-1. “Creative Economy Innovation Centers” exported to
Saudi Arabia and Brazil
2-2. Youth Hope Fund and Youth Hope Foundation to
provide jobs for 130,000 youths
3. Established cultural enrichment as a new growth engine — 47 3-1. Laid the foundation for job creation through the full
fledged operation of the Culture Creation and
Convergence Belt
3-2. Established a foundation for a more competitive
tourism industry
3-3. Created conditions to vitalize domestic tourism 3-4. Established a basis for the globalization of Korean food
through successful participation in the Milan Expo
3-5. Increased opportunities for citizens to enjoy cultural
activities in daily life
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4. Built the framework for a lifetime social safety net through the establishment of the “Life-cycle Welfare System” — 61 4-1. Provided Basic Pension for 4.48 million people and
dementia treatment service for 20,000 people
4-2. Broader and enhanced protection for vulnerable groups
through the first revision of the Basic Livelihood Security
System in 15 years and implementation of customized
welfare payment system
4-3. Disclosed a broad range of government information to
the people through “Government 3.0” with an emphasis
on openness, sharing, communication, and collaboration
4-4. Established a social atmosphere that values work-life
balance through the proliferation of a culture of “work-
family compatibility”
5. Normalization of abnormal government practices through the eradication of corruption and bribery — 75 5-1. Established legal framework for the prevention of
corruption and bribery
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6. Reorganized inter-Korean relations through strong security and a principled stance — 79 6-1. Promotion of the normal development of inter
Korean relations
6-2. Consistent promotion of the “Trust-building Process on
the Korean Peninsula”
6-3. Made efforts to enrich the lifestyle, environment, and
culture of the North Korean people and fundamentally
resolve the issue of divided families
6-4. Making practical preparations for the unification of the
Korean peninsula through the founding of a public-
private partnership committee
7. Strengthened international status of Korea through “Trust Diplomacy,” prioritizing national interests — 87 7-1. Improved international status of Korea through
increased contribution to the international community
and strengthened leadership
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
1 Established a foothold for economic revitalization through four major reforms 1—1 Established globally recognized Three-year Plan for Economic Innovation and achieved the highest sovereign credit rating in Korean history
1—2 Became country with the third largest economic territory, sixth largest export volume, and 11th largest GDP in the world
1—3 Launched public sector reforms through Public Employee Pension System Reform
1—4 Implemented labor reforms to create 370,000 jobs in five years
1—5 Accelerated financial reforms with the development of Fintech and crowdfunding
1—6 Bolstered education reforms by implementing strong structural reforms for universities and expanding integrated industrialacademia vocational schools
1. Established a foothold for economic revitalization through four major reforms
1-1 Established globally recognized Threeyear Plan for Economic Innovation and achieved the highest sovereign credit rating in Korean history ●
Supported private businesses through two revised
supplementary budgets in 2013 and 2015 ●
Made efforts to boost domestic demand by
implementing measures to normalize the real estate market and revitalize corporate investment, drew up roadmap to achieve 70-percent employment rate, and developed household income stimulus package focusing on three tax policies ●
Consistent increase in GDP
• Ranked 14th in the world in 2013 • Ranked 13th in the world in 2014 • Ranked 11th in the world in 2015 (IMF projection as of October 2015) ●
533,000 newly hired workers compared to the previous
year(largest increase since 2002) ●
Raised income distribution equality to the highest level
since 2006 by introducing the Basic Pension system in July 2014 and expanding welfare expenditure
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Brief Summary of the Last Three Years of the Park Geun-hye Administration ●
Achieved the highest employment rate (65.7 percent)
in Korean history ●
Improved sovereign credit rating to the highest level in
Korean history (as of September 2015) • S&P: A+ ▶ AA • Moody’s: Aa 3(AA-) ▶ Aa2 (=AA)
*Now leading China and Japan
●
The IMF ranked the Republic of Korea second in the
world in terms of ample fiscal space (June 2015) ●
The OECD included the Republic of Korea in the top
eight countries (Australia, New Zealand, Norway, Switzerland, etc.) with outstanding fiscal soundness (November 2015) Achieved highest credit rating in Korea’s history AA
(Aa3)
A+
(A1)
A
(A2)
B-
(A3)
1998 Moody’s
2009 S&P
2015 Fitch
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2015
(Japan)
1. Established a foothold for economic revitalization through four major reforms ●
Selected as the most innovative economy in the world
by Bloomberg for three consecutive years ▶ “In the world of ideas, South Korea is king.” (January 2016) * Ranking in descending order: South Korea (91.31), Germany (85.54), Sweden (85.21), Japan (85.07), Switzerland (84.96), and the USA (82.84) Sovereign Credit Ratings of Major Countries (as of December 31, 2015) Rating
AAA (Aaa)
AA+ (Aa1) AA (Aa2)
AA- (Aa3)
A+ (A1) A (A2)
Moody’s
S&P
Fitch
USA, Germany,
Germany, UK(-)3,
Singapore
Singapore, Hong Kong Singapore
Canada, Australia, UK, Hong Kong
Canada, Australia, USA
Republic of Korea, Belgium, France(-) France
China, Taiwan,
Republic of Korea,
Saudi Arabia, Chile, China, Taiwan, Chile Belgium Japan
Japan, Ireland, Saudi Arabia(-)
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USA, Germany,
Canada, Australia, UK, Hong Kong France,
Saudi Arabia(-), Belgium(-)
Republic of Korea
China, Taiwan(+), Chile
Japan
Brief Summary of the Last Three Years of the Park Geun-hye Administration
1-2 Became country with the third largest economic territory, sixth largest export volume, and 11th largest GDP in the world ●
Expanded its FTA network
• Signed FTAs with a total of 52 countries, including China, Vietnam, and three Commonwealth countries • Accounts for approximately 73.5 percent of the FTA market (third largest in the world following Chile and Peru) ●
Engaged in vigorous summit diplomacy activities
• Won bids for large-scale projects worth USD 67.5 billion in major emerging markets, such as the Middle East and Central Asia • SMEs signed contracts worth approximately USD 2 billion through one-on-one business consultations held during President Park’s overseas trips ●
Trade volume to FTA countries
• Trade volume with FTA countries has increased at a rate 2.5 times that of Korea’s total trade volume with all countries * 2014 growth rates of exports / imports / exports and imports All countries: 2.4% / 1.9% / 2.2%; FTA countries: 6.9% / 4.2% / 5.7% ●
In 2015, Korea was ranked the sixth largest exporter for
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1. Established a foothold for economic revitalization through four major reforms
the first time in its history ●
The International Monetary Fund (IMF) projected
that South Korea’s economic volume (in terms of GDP) will grow from the 13th to the 11th largest in the world ●
The Centre for Economics and Business Research
(CEBR) forecasted that, based on its technology-based manufacturing and corporate-friendly environment, Korea will emerge as the seventh largest economy in the world by 2030 Major Exporting Countries (January to September, 2015) Rank
Country
2
USA
1
Exports
Rate of Increase
USD 1,134.1 billion
-6.0%
China
USD 1,664.1 billion
3
Germany
USD 999.7 billion
-11.9%
5
Netherlands
USD 424.2 billion
-16.7%
USD 377.2 billion
-13.8%
USD 343 billion
-9.1%
4
Japan
USD 469.6 billion
6
Republic of Korea
USD 396.8 billion
8
Hong Kong
USD 373.2 billion
10
Italy
7 9
France UK
USD 341.8 billion
Source: Korea International Trade Association (KITA)
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-1.9%
-9.2%
-6.6% -2.4%
-14.5%
Brief Summary of the Last Three Years of the Park Geun-hye Administration
1-3 Launched public sector reforms through Public Employee Pension System Reform ●
Public Employee Pension System Reform
• Reduced pension benefits for all public employees currently in office for the first time since the Public Employee Pension System was implemented in 1960 • Pension age increased from 60 to 65 • Elicited public employees to share the burden of non public employees ●
Public Institution Reform
• Transparently disclosed debts and the status of the excessive welfare system of public institutions • Called on public institutions to each establish and implement a strong debt reduction plan and adopt a gross bond issuance limit, segmented accounting system, and an in-depth, ex-post-facto evaluation system - The debt ratio of all public institutions dropped from 220 percent in 2012 to 202 percent in 2014 - In 2014, the amount of debt, which had increased by KRW 40 to 50 trillion every year since public institutions began disclosing management information in 2007, recorded its first decline ●
Wage Peak system implemented in public institutions
in December 2015 • Conserved financial resources with the introduction of the
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1. Established a foothold for economic revitalization through four major reforms
Wage Peak system for new hires • Expected to create jobs for over 8,000 people from 2016 to 2017
1-4 Implemented labor reforms to create 370,000 jobs in five years ●
Starting in September 2014, the Economic and
Social Development Commission began discussing labor reforms and reached the Great Compromise (Tripartite Agreement between labor, management, and government), including 65 tasks in eight categories, on September 15, 2015 ●
The Great Compromise of the labor, management,
and government representatives • Create 370,000 jobs over the next five years • Strengthen the protection of non-regular workers ▶ resolve discrimination, reduce job instability, address the dual structure of the Korean labor market, and strengthen the social safety net ▶ provide stability for the unemployed and support their prompt reemployment
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
The Economic and Social Development Commission reached a Tripartite Agreement after a year-long discussion (September 15, 2015) Increase of Youth Employment
Expansion of the wage peak system, and wage limit on high-income earners, Reduction of working hours
Improvement Clarification of regular wage, reform of “flexicurity” of work performance-centered wage
Reduction of labor market duality and strengthening of the social safety net
system, Clarification of the standards and process of fair dismissal and other employment regulations
Improved employment conditions for non-regular employees (increased job security and employment opportunities), Reinforcement of the social safety net, such as extended unemployment benefit period, Expansion of mutually beneficial cooperation among prime contractors and subcontractors, conglomerates and SMEs
Follow-up measures for seamless implementation of Tripartite Agreement Five Legislations
• Labor Standards Act • Employment Insurance Act • Industrial Accident Insurance Act • Temporary Agency Worker Act • Fixed-time Work Act (under mid to long-term negotiation)
Two Guidelines
• Employment Regulation Guideline • Fair Recruitment Guideline
Practice
• Increased youth employment, support for implementation of Tripartite Agreement at worksites, such as mutually beneficial cooperation among prime contractors and subcontractors • Strict measures against illegal activities
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Effects of Labor Reforms
• Over 370,000 jobs for young people • Employment stability for
700,000 short term laborers • 2.85 million
laborers and their families with the
freedom to enjoy dinners together • Additional
unemployment
benefits for 1.28 million people annually
• Compensation for accidents
occurring while commuting to or from work provided to
260,000 people over five years
1. Established a foothold for economic revitalization through four major reforms
1-5 Accelerated financial reforms with the development of Fintech and crowdfunding ●
Announced the IT and Finance Convergence
Support Plan in January 2015, in which policy directions, such as the reduction of preliminary regulations and creation of a Fintech ecosystem, were introduced ●
Launched the Fintech support center for financial
companies in March 2015 to establish channels of communication and cooperation between Fintech businesses and financial companies ●
Repealed regulations impeding the fostering of the
Fintech industry, such as the mandatory installation of a security program (February), mandatory use of digital certificates (March), and preliminary security review (June) ●
Contributed to the continuous emergence of
innovative and practical Fintech services, including online insurance supermarkets, simplified payment services (26 types), simplified money transfers (eight types), account switching service, and the opening of banking accounts online 34
Brief Summary of the Last Three Years of the Park Geun-hye Administration
â—?
Crowdfunding (the practice of funding ventures
by raising funds from a large number of investors) implemented on January 25, 2016 â—?
Launched Internet-primary banks in 2016
Number of Electronic Financial Businesses and Operators (2012-2015)
60
89
67
2013
100
2014
Number of Electronic Financial Business Operators
84
149
2015 (end of November)
Number of Registered Electronic Financial Businesses
Revenue of electronic financial service providers and number of transactions
1,564
1,643
1,129
1,176
2012
2013
1,926 1,215
2014
Revenue (Unit: KRW 1 billion)
Number of transactions (Unit: KRW 10 million)
35
2,234(expected) 1,486(expected)
2015
1. Established a foothold for economic revitalization through four major reforms
Number of professionals engaged in Fintech startups and related industries • Number of startups*
44
▶
May
• Number of people active in the industry**
approx. 360
24,300
November
2014
▶
approx. 25,600 expected in 2015
* Number registered with Korea FinTech Forum (2015) ** Estimated by the Financial Security Institute
Size of Mobile Payments Market (Unit: KRW 1 trillion)
6.6 2013
14.9
2014
36
17
2015 (January to September)
Brief Summary of the Last Three Years of the Park Geun-hye Administration
1-6 Bolstered education reforms by implementing strong structural reforms for universities and expanding integrated industrial-academia vocational schools ●
Evaluation of structural reforms at universities
• Universities subject to proportional reductions of admission quotas depending on the results of the evaluation • Subsidies for universities to be determined based on universities’ voluntary reductions of admission quotas • To reduce 47,000 admissions (planning to reduce admissions by a total of 160,000 by 2022) ●
Transformation of educational paradigm for high
school graduates pursuing technical professions through the participation of both schools and businesses
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
2 Made progress toward realization of creative economy and laid the foundation for the creation of jobs for youths 2—1 “Creative Economy Innovation Centers” exported to Saudi Arabia and Brazil
2—2 Youth Hope Fund and Youth Hope Foundation to provide jobs for 130,000 youths
2. Made progress toward realization of creative economy and laid the foundation for the creation of jobs for youths
2-1 “Creative Economy Innovation Centers” exported to Saudi Arabia and Brazil ●
Proposed “creative economy” as a new economic
paradigm to overcome structural problems faced by the Korean economy, such as low economic growth and youth unemployment, and established online and offline platforms through a nationwide network to realize a creative economy ecosystem • Founded “Creative Economy Town” (September 2013) • Established Creative Economy Innovation Centers in 17 metropolitan cities and provinces, starting with Daegu in September 2014 and ending with Incheon in July 2015, to play a pivotal role in supporting startups and promoting innovation among SMEs ●
Creative Economy Innovation Centers
• A model unique to the Republic of Korea that fosters startups and SMEs through collaboration among the government, local governments, and conglomerates, which are now established as pivotal institutions in the regional startup and innovation ecosystems • Through the centers, 578 companies participated in the startup training program, 541 SMEs received support, and 283 people were hired • The centers were also instrumental in attracting KRW 126.7 billion in investment and generating KRW 33.7 billion in new sales (as of the end of 2015)
40
Brief Summary of the Last Three Years of the Park Geun-hye Administration
• Exported the model for the Creative Economy Innovation Centers to Saudi Arabia and Brazil in March and April of 2015, respectively, following the president’s visits to those countries • Saudi Arabia agreed to collaborative management of the innovation center with the Daejeon Creative Economy Innovation Center in October 2015, and is now currently in the process of opening a local innovation center • Brazil signed a business agreement with the Daegu Creative Economy Innovation Center in September 2015, and is now currently facilitating the exchange of startups and human resources • Korean innovation centers signed MOUs with France, Honduras, China, Bulgaria, and New Zealand for exchanges and collaborations • Approximately 5,000 companies, including 2,500 startups and 2,500 SMEs, to receive support from Creative Economy Innovation Centers by the end of 2017, leading to even further progress and accomplishments
41
2. Made progress toward realization of creative economy and laid the foundation for the creation of jobs for youths
Support for Innovation Programs at SMEs
Trained Startups
578 businesses
Production of Prototypes
4,060 cases
541 businesses
Attracted Investment
Achievements of Creative Economy Innovation Centers
Mentoring and Consulting
KRW 126.7 billion
New Employees
283
11,738 cases
42
Brief Summary of the Last Three Years of the Park Geun-hye Administration
2-2 Youth Hope Fund and Youth Hope Foundation to provide jobs for 130,000 youths ●
South Korea’s labor, management, and government
representatives concluded the Great Compromise (Tripartite Agreement) to vitalize youth employment and improve the structure of the labor market (September 15, 2015) ●
Created the “Youth Hope Fund”
• President Park Geun-hye was the first person to join the Hope Fund (September 21, 2015) • With the participation of people from all social classes, the total number of donors exceeded 100,000 and the fund reached KRW 135.7 billion (as of February 5, 2016) ●
Official inauguration of the “Youth Hope Foundation”
(October 19, 2015) • Designs and promotes job search projects based mainly on the participation and creativity of citizens while shedding light on young people in social welfare blind spots, who have difficulty receiving support through existing government measures • Focusing on reflecting the actual supply and demand of youth job seekers and hiring businesses, inducing the collaboration of the public and private sectors, and connecting education and training with employment
43
2. Made progress toward realization of creative economy and laid the foundation for the creation of jobs for youths
• Established the “Youth Hope Academy,” tasked with training young people to meet the demands of companies, matching job-seeking youths with hiring companies, and providing mentoring services for young jobseekers by collaborating with the Creative Economy Innovation Centers and other such institutions
44
Brief Summary of the Last Three Years of the Park Geun-hye Administration
2016 Youth Hope Fund Project
Employment service provided to 125,000 people Created 6,300 jobs Young jobseeker
Company
• Manpower and
Employment Welfare Plus Center
Local
Overseas
startups and young jobseekers • Only-One Job Fair for strong SMEs sessions and special lectures)
Culture Creation and Convergence Belt
employment
On-line • Youth job search portal
• Mentoring service (consulting
employment demand
K-MOVE Center
Job Matching
Off-line • Matching new venture-backed
• Training and
Youth Hope Foundation
Universities
employment
training demand
Creative Economy Innovation Center
Startup
Professional Training
Domestic • Training of Big Data service planners • Training of mobile game designers
• Training of young people as tour guide translators
Overseas • Training professionals to make inroads into Silicon Valley • Training youths as “Global Peddlers
(youth export experts)” • Support for youths to launch global startups or find jobs overseas
45
Brief Summary of the Last Three Years of the Park Geun-hye Administration
3 Established cultural enrichment as a new growth engine 3—1 Laid the foundation for job creation through the full-fledged operation of the Culture Creation and Convergence Belt
3—2 Established a foundation for a more competitive tourism industry
3—3 Created conditions to vitalize domestic tourism
3—4 Established a basis for the globalization of Korean food through successful participation in the Milan Expo
3—5 Increased opportunities for citizens to enjoy cultural activities in daily life
3. Established cultural enrichment as a new growth engine
3-1 Laid the foundation for job creation through the full-fledged operation of the Culture Creation and Convergence Belt ●
Announced the plan to create the “Culture Creation
and Convergence Belt” (February 2015) • A project to establish the Culture Creation and Convergence Belt, a cultural cluster and source of cultural enrichment for the development of the cultural contents industry, which is at the core of Korea’s creative economy. To include six institutions responsible for cultural content planning (Creative Center for Convergence Culture), commercialization (Creative Economy Leader [CEL] Venture Complex), realization and consumption (K-Culture Valley, K-Experience, and K-POP Arena), and the development of human resources and technology (Culture Creation Academy) to revitalize the Korean economy through cultural enrichment and the creation of jobs for youths ●
Opened the Creative Center for Convergence Culture
(February 2015) • 33,000 visitors and 810 cases of usage of support facilities • Mentored over 300 “youth creators” and trained them to be experts in various areas, including broadcasting, the arts, and mobile games • Funded and supported the planning and production of 35 cultural programs
48
Brief Summary of the Last Three Years of the Park Geun-hye Administration
Concept Map for the Culture Creation and Convergence Belt
Realization/ Consumption
Planning
Production
Creative Center for Convergence Culture (February 2015, Sangam-dong)
Creative Economy Leader (CEL) Venture Complex (December 2015, Cheonggyecheon)
Goyang K-Culture Valley (2017, Goyang, Gyeonggi-do)
A Korean-style of cutting-edge cultural content complex
Support for planning and commercialization
Residence/ production support Production of convergent contents
Songhyeondong, Goyang K-Culture Valley (K-Experience) (2017, Phase 1 in Songhyeondong, Jongnogu, Seoul)
A cultural complex focused on traditional culture
K-POP Arena A music content Performance Hall hub focused on (2017, Hallyu Songpa-gu, Seoul)
Manpower Development / Technology Development
Culture Creation Academy (to open temporarily in March 2016, scheduled to move to Hongneung in March 2017) The hub of Culture Technology R&D and development of integrated professionals who will go on to lead Korea’s content industry
49
3. Established cultural enrichment as a new growth engine ●
Opened the CEL Venture Complex (December 2015)
• Houses 93 enterprises selected through a process with a high competition rate of 13 to 1 • Enterprises in the CEL Venture Complex are exempt from paying rent, permitted to use all creative facilities (including a render farm, virtual center, projection test facilities, and performance halls) and infrastructure necessary to conduct experiments and produce cultural programs • Provides an environment for enterprises to focus on content creation by offering consultations on investment, financial, legal, and accounting matters with related institutions at the Venture Complex • Currently promoting exchange and cooperating with overseas venture and design complexes in France (French Tech Ticket) and China (PMQ in Hong Kong) ●
Completed preparations for the opening of the Culture
Creation Academy in 2016 • To open temporarily at the CEL Venture Complex in March 2016 and foster integrated professionals through a content creation curriculum and faculty-student projects • Expected to create over 53,000 jobs over the next five years
50
Brief Summary of the Last Three Years of the Park Geun-hye Administration
3-2 Established a foundation for a more competitive tourism industry ●
The largest number of foreign tourists in Korea in
2014, 14.2 million • Attracted 6.12 million Chinese tourists, a 41.6-percent increase from the previous year, due to strengthened promotional marketing and improved visa processing ●
Intensive fostering of MICE, medical tourism, cruise
tourism, and other high value-added tourism industries
• Resulted in approximately USD 18 billion in tourism income, the highest level of performance ever achieved in Korea’s tourism industry (as of 2014) • Recorded the highest year-on-year increase in the past six years at 24.4 percent ●
Implemented special loans for tourism business
operators, intensive promotional marketing in countries that send large numbers of tourists to Korea, inter-governmental agreements such as ministerial dialogue between Korea and China, early launch of the Korea Grand Sale, and visa fee waivers for group tours • The “Korea Grand Sale,” which had been scheduled for 2016, was bumped up to 2015 (August 14 to October 31) to help boost the economy (participated by 342 companies and generated total gross sales of KRW 345.7 billion)
51
3. Established cultural enrichment as a new growth engine
Number of domestic tourists & Spending by domestic tourists in spring and autumn
25.2% ⬆︎ 29.71 million 2014
▶
18.8% ⬆︎
37.2 million
KRW 41.426 trillion
2015
2014
Number of domestic tourists in spring and autumn
▶
KRW 49.224 trillion 2015
Spending by domestic tourists in spring and autumn
3-3 Created conditions to vitalize domestic tourism ●
Actively pursued the vitalization of domestic tourism
to achieve balanced growth across domestic demand and exports and support the stable growth of the tourism industry • Implemented the first “Tourism Weeks” in 2014 (Spring, May 1 to 11 / Autumn, September 25 to October 5) • Extended the duration of Tourism Weeks in 2015 from 11 days to 14 days each (Spring, May 1 to 14 / Autumn, October 19 to November 1) • Approximately 37.2 million domestic tourists traveled across the country during Tourism Week in 2015, a 25-percent increase from the previous year; total of 79.35
52
Brief Summary of the Last Three Years of the Park Geun-hye Administration
million days spent traveling, a six-percent increase; and KRW 4.92 trillion in total spending, a 19-percent increase • Substitute holiday system implemented for the first time during the Chuseok holiday of 2014 (September 10, 2014) ▶ 89.2 percent of conglomerates and 62.8 percent of SMEs
participated in the system, generating KRW 3.7 trillion in induced production through increased tourism spending
3-4 Established a basis for the globalization of Korean food through successful participation in the Milan Expo ●
Participated under the theme “Hansik, Food for the
Future: You are What You Eat” (Milan Expo, May 1 to October 31, 2015) • Milan Expo attracted 145 participating countries and 21.5 million visitors from around the world • Korea Pavilion was the ninth-largest venue, attracting 2.3 million visitors, the largest number in a single event related to Korea held in Europe • Attracted 190,000 visitors to the Korean restaurants and 220,000 visitors to the souvenir shop in the Korea Pavilion to experience and enjoy Korea’s food culture • Utilized the Kimchi Bus to introduce Korean food and food culture to the locals and visitors in Milan and neighboring
53
3. Established cultural enrichment as a new growth engine
areas (May 1 to 16, 2015) • Operated the Korean Food Promotion booth (May 27 to 30, 2015, in the front yard of the Korea Pavilion), which introduced traditional tea, screened promotional videos, and promoted interest in Korea among locals and visitors • Received over 800 positive reviews about the Korea Pavilion from the local media, praised for “laying the foundation for the expansion of high-quality Korean culture, particularly Korean food, in Europe” • Won the silver prize for exhibition design at the EXPO Milano 2015 Awards, the official Bureau of International Expositions (BIE) awards ceremony; the 2015 Red Dot Design Award, one of the top three design awards in the world; and a special prize at the “2015 Class Expo Pavilion Heritage Awards.” Recognized for the artistic value of the pavilion and the “potential of Korean food” • Promoted interest in Korean food — only 35 percent of all visitors had tasted Korean food before, but 89 percent of them answered they would recommend Korean food to others — and increased interest in Korea — only 20 percent answered that they know a lot about Korea, but 77 percent answered that they would travel to Korea in the future ●
Milan Expo to generate over KRW 504 billion in
economic effects, as Korea’s exports to Italy are expected to increase by approximately KRW 406.8 billion over the next 10 years and tourism income is to increase by approximately KRW 97.2 billion with the influx of 147,000 additional Italian visitors to Korea (“Report on the Effects of National Brand 54
Brief Summary of the Last Three Years of the Park Geun-hye Administration
Enhancement and Economic Value in 2015 Milan Expo” by the Korea Culture and Tourism Institute) ●
The success of the Korean Pavilion at the Milan Expo
is attributed to the new approach that was taken toward the expo, focusing on the combination of “culture and industry” while breaking from the previous industrial fair approach, and holding an array of events under the theme “Korean food” as well as traditional performances and exhibitions through close cooperation among the Ministry of Culture, Sports and Tourism, Ministry of Agriculture, Food and Rural Affairs, Korea Tourism Organization, Korean Food Foundation, and other related organizations and institutions
3-5 Increased opportunities for citizens to enjoy cultural activities in daily life ●
Established an institutional foundation for cultural
enrichment • Enacted the Framework Act on Culture in 2013, Regional Culture Promotion Act in 2014, Framework Act on the Vitalization of National Leisure in 2015
55
3. Established cultural enrichment as a new growth engine ●
Adopted the Cultural Impact Assessment System
• Promoting social proliferation of the value of culture ●
Implemented “Culture Day” (last Wednesday of every
month starting in January 2014) • Benefits include free admissions, extended hours, and discounts for cinemas, theaters, libraries, and cultural assets • For cinemas, the number of visitors on “Culture Day” increased to about five times the average number of visitors on other Wednesdays, leading revenues to increase as well • Cultural consumption increased by 23.8 percent after the implementation of Culture Day (based on analysis of Shinhan Card usage) • Increased people’s participation in cultural activities without negative financial impact on cultural facilities, allowing such facilities to continue their participation in the program • Number of participating programs more than doubled, from 883 (January 2014) to 2,081 (November 2015) • Korean citizens’ awareness of the policy increased as well, from 19 percent (January 2014) to 45.2 percent (August 2015) ●
Created community culture centers
• Supporting the establishment of 71 centers since 2014, opened 28 centers as of December 2015 • Opened the Seoul branch of the National Museum of Modern and Contemporary Art in 2013 and the National Hangeul Museum in 2014 ▶ Improved conditions for cultural enrichment of the public
56
Brief Summary of the Last Three Years of the Park Geun-hye Administration
Changes in the number of participating programs (2015) 2,500 2,000 1,500
1,338
1,475
1,574
1,816
1,908
1,661
1,853 1,870
1,913
2,055 2,081
1,000
Au gu st Se pt em be r Oc to be r No ve m be r
Ju ly
Ju ne
M ay
M ar ch
Ja nu ar y Fe br ua ry
0
Ap ril
500
Changes in of “Culture Day” policy awareness 50 45 40 35 30 25 20 15
36.3
35.4
August
November
40.2
45.2
19
10 5 0
January 2014
57
March 2015
August
3. Established cultural enrichment as a new growth engine ●
Integrated culture, travel, and sports vouchers into the
Munhwa Nuri Card in 2014 • Enhanced ease of use of the card to help low-income citizens enjoy more culture, art, travel, and sport events • A total of 1.48 million and 1.64 million people enjoyed the cultural benefits in 2014 and 2015, respectively (program to expire in February 2016) • Reinforced policy efforts to narrow the cultural enjoyment gap between people and regions, including a culture tour program for marginalized regions, which provided cultural benefits to about 580,000 people in such regions ●
“Ieum,” the Culture and Arts Center for the Disabled,
officially opened (November 2015) • First center of its kind established by the government to create a pivotal base for organizing creative cultural and artistic activities for people with disabilities • The center, with five floors aboveground and one underground floor, is expected to function as a promotional agency for the creation of artworks, exhibitions, and cultural exchanges for people with disabilities ●
Welfare policies for artists
• Created a safety net for artists through creative work grants, akin to unemployment allowances, allowing them to pursue their creative endeavors unencumbered • Provided a proactive welfare system through a dispatch support program, allowing artists to engage in sideline activities related to their own artistic work • Laid the foundation for a healthy artistic ecosystem through
58
Brief Summary of the Last Three Years of the Park Geun-hye Administration
the expansion of a social safety network for artists, including the introduction of workers’ compensation insurance for artists, development and distribution of a standard contract to serve as a guideline for fair contracts, and the improvement of unfair practices in the art world • Since 2013, approximately 17,000 artists have benefited from the new welfare policy for artists over the last three years
59
Brief Summary of the Last Three Years of the Park Geun-hye Administration
4 Built the framework for a lifetime social safety net through the establishment of the “Life-cycle Welfare System” 4—1 Provided Basic Pension for 4.48 million people and dementia treatment service for 20,000 people
4—2 Broader and enhanced protection for vulnerable groups through the first revision of the Basic Livelihood Security System in 15 years and implementation of customized welfare payment system
4—3 Disclosed a broad range of government information to the people through “Government 3.0” with an emphasis on openness, sharing, communication, and collaboration
4—4 Established a social atmosphere that values work-life balance through the proliferation of a culture of “work-family compatibility”
4. Built the framework for a lifetime social safety net through the establishment of the “Life-cycle Welfare System” ●
Life-cycle Welfare System
• Provides various critical services, including childbirth, childcare, poverty reduction, health, and senior welfare services, for citizens in each stage of life — infancy, childhood and adolescence, youth, middle age, and old age • Childcare and childrearing support for families with children up to the age of five (March 2013) - Childrearing support payments for families with infants or toddlers attending daycare centers (approx. 1.5 million as of 2015) regardless of the parents’ income level
- Child support for children being home-schooled in lieu
of attending nurseries (approx. 1.01 million children as of 2015) • Reduced financial burden on households related to medical fees for four major illnesses and other healthcare costs (June 2013 –) • Adopted and implemented the Basic Pension system (July 2014) • Expanded long-term nursing care service to include dementia patients (July 2014) • Revised the Basic Livelihood Security System to adopt a customized payment system (July 2015) • Established the Third Basic Plan on Low Fertility and Aging Society (2016 to 2020) in December 2015
62
Brief Summary of the Last Three Years of the Park Geun-hye Administration
Strengthened Childrearing Support • Number of children receiving childcare and childrearing support 1.45 million
▶
2012
• Professional counselors for assistant and substitute teachers
2.45 million
383
2015
2012
2012
▶
19,866 counselors 2015
• Improved conditions for daycare teachers
• Surveillance camera installation rate
0.1%
▶
99.9%
KRW 103.6 billion
2015
2012
▶
KRW 372.2 billion 2015
4-1 Provided Basic Pension for 4.48 million people and dementia treatment service for 20,000 people ●
Adopted and implemented the Basic Pension system
• Stable monthly pension payments issued to the elderly (December 2015, total 4.48 million people) - 15.4-percent year-on-year increase in transfer income for elderly households (KRW 656,000 ▶ KRW 757,000) - Four-percentage-point year-on-year decrease in relative
63
4. Built the framework for a lifetime social safety net through the establishment of the “Life-cycle Welfare System”
poverty rate among the elderly (48 percent ▶ 44 percent) - 24.3-percent year-on-year improvement of the income quintile share ratio (top 20 percent/bottom 20 percent) of elderly households (ratio decreased from 10.5 ▶ 7.9) • Continuous increase in jobs for the elderly (220,000 jobs in 2012, support for seven months ▶ 370,000 jobs in 2015, support for nine to 12 months) Basic Pension • Recipients
4.07 million
• Relative Poverty Rate among the Elderly
▶
4.24 million
▶
2014
48%
4.48 million 2015
44%
4th Quarter 2014
*Source for elderly poverty rate: Statistics Korea, household survey analysis for the fourth quarter of 2014 (National Pension Research Institute)
Long-term Nursing Care Service • Recipients 380,000 ▶ (6.1%) 2013
• Satisfaction Level 420,000 (6.6%) 2014
▶
460,000 (7.0%) 2015
88.5%
*Proportion of elderly population approved to receive service
64
2014
89.7%
2015
Brief Summary of the Last Three Years of the Park Geun-hye Administration
4-2 Broader and enhanced protection for vulnerable groups through the first revision of the Basic Livelihood Security System in 15 years and implementation of customized welfare payment system ●
Revised the Basic Livelihood Security System to adopt
a customized payment system (July 2015) • Increase in the total number of recipients (1.32 million in June 2015 ▶ 1.65 million in December 2015) • Increase in the average amount of monthly cash support (livelihood + housing support) per household (KRW 407,000 ▶ KRW 456,000) Effects of the revised Basic Livelihood Security System • Recipients of Basic Livelihood Security
1.32 million
▶
June 2015 (immediately before revision)
• Average Cash Support (Livelihood + Housing) per Household
1.65 million
KRW 407,000
December 2015 (immediately after revision)
June 2015 (immediately before revision)
65
KRW 456,000 monthly
July 2015 (immediately after revision)
4. Built the framework for a lifetime social safety net through the establishment of the “Life-cycle Welfare System” ●
Employment Welfare Plus Center
• Provides a comprehensive range of employment and welfare services designed to help low-income citizens find work and escape from poverty • 40 centers in 2015 ▶ 100 centers in 2017 (planned)
4-3 Disclosed a broad range of government information to the people through “Government 3.0” with an emphasis on openness, sharing, communication, and collaboration ●
Government 3.0
• Release and sharing of government information and data with citizens (transparent government) • Removal of barriers between ministries to create a more efficient government (competent government) • Provision of customized administrative services for each and every citizen (service-oriented government) • Creation of a “citizen participatory government,” where citizens actively design policies and services • Government proactively provides services to citizens without citizens having to submit requests or demands ●
Ranked No. 1 in terms of disclosure of public data in
the July 2015 OECD report 66
Brief Summary of the Last Three Years of the Park Geun-hye Administration
• Three times more items of data disclosed: 5,000 in 2013 ▶ 12,000 in 2014 ▶ 16,000 in 2015 • 56 times more downloads: 14,000 in 2013 ▶ 153,000 in 2014 ▶ 789,000 in 2015 • 17 times more mobile applications and web development projects: 42 in 2013 ▶ 395 in 2014 ▶ 695 in 2015
4-4 Established a social atmosphere that values work-life balance through the proliferation of a culture of “work-family compatibility” 4-4-1. Established infrastructure to build a system of “work-family compatibility” ●
Vitalization of paternity leave
• Adopted “Father’s Month” system (October 2014): In cases where parents take consecutive periods of leave for the same child, the second person to take leave receives full wages for the first three months (up to KRW 1.5 million) • 42.4 percent increase in number of men taking paternity leave in 2015 from the previous year (4,872 men in 2015) ●
Working hours reduction program for parents with
young children
67
4. Built the framework for a lifetime social safety net through the establishment of the “Life-cycle Welfare System”
• Expanded from workers with children under the age of six to include those with children under the age of eight • 84.7 percent increase in number of program participants in 2015 from the previous year (2,061 people in 2015) Increase in number of parents taking parental leave and reduction in working hours for parents with children from 2014 to 2015 • Number of parents taking parental leave Total 76,833
●
• Reduction in work hours for parents
Total 87,339
Men 3,421
Men 4,872
1,116
2,061
2014
2015
2014
2015
Proliferation of family-friendly business management
• Increased financial support for businesses participating in the working hours reduction program, from KRW 2.4 million to KRW 3.6 million (in case of SMEs for over 12 months) • Family-friendly Certification System: Certification for businesses and organizations with model family-friendly programs, such as support for childbirth and childcare and flexible work arrangements
68
Brief Summary of the Last Three Years of the Park Geun-hye Administration
4-4-2. Fulfilled demand for various jobs by providing flexible part-time jobs and improved work processes ●
Vitalization of flexible part-time jobs
• Jobs where workers can work for fewer hours than full time workers and still receive guaranteed basic benefits and not be discriminated against in the workplace • 73.6 percent of all workers would like to have flexible part time jobs (2014 Survey of the Public Awareness of Equal Employment for Both Genders) • Plan for work-life balance by working, actively engaging in childcare, preparing for retirement, taking care of health, tending to ill family members, or studying in school • Support for new flexible part-time job programs: Pays businesses 50 percent of wages for newly hired flexible part time workers for one year • Flexible part-time job conversion system (June 2015): Switching from full-time to part-time depending on workers’ needs, such as childcare • Promotion of positive perception of flexible part-time jobs: Increased rate of people who wish to find flexible part-time jobs (73.6 percent in 2014 ▶ 78.4 percent in 2015) • Twice as many people hired as flexible part-time workers than in 2014
69
4. Built the framework for a lifetime social safety net through the establishment of the “Life-cycle Welfare System�
Part-time Job Support Category
Number of support recipients Support amount
2011
2012
2013
2014
2015
139
866
1,294
5,622
11,056
KRW 198 million
KRW 2.009 billion
KRW 3.419 KRW 12.969 KRW 40.674 billion billion billion
Proportion of people who want part-time jobs 80%
73.6%
75% 70% 65%
78.4%
63.5%
60% 55% 50%
2013
2014
2015
* Korea Employment Information Service, May to June 2015
Satisfaction Level at Workplaces by Category 4.25
4.21
4.17
Work distribution during peak hours
4.15
Efficiency of personnel operation
Support for work-family balance
* Korea Employment Information Service, May to June 2015
70
Reduction in manpower shortage
Brief Summary of the Last Three Years of the Park Geun-hye Administration
4-4-3. Expanded dependable childcare support service system ●
Continued expansion of childcare facilities
• 150 additional public daycare centers, 93 additional workplace daycare centers, and 272 private and home daycare centers designated as outstanding public-model daycare centers to receive government subsidies based on their excellence (2015) • Increased proportion of children in public daycare centers among all types of daycare centers (26 percent in 2014 ▶ 28 percent in 2015) • Prevention of child abuse through improved conditions for daycare teachers and mandatory installment of surveillance cameras ●
Expanded childcare and childrearing support
customized to the specific conditions of recipient families • Childcare service: Provides childcare services for children who would otherwise be left alone without supervision due to the gap between the hours of daycare centers and the time mothers finish work • Increased age limit in order to provide full-time infant care service for more families (infants up to 12 months of age ▶ infants up to 24 months of age) • Support for working mothers and fathers: Provides customized support for each double-income family based on their living patterns and situations (2015)
71
4. Built the framework for a lifetime social safety net through the establishment of the “Life-cycle Welfare System”
• Nationwide Healthy Family Support Center: Counseling, guidance on various systems and programs, support for parental training, and family programs (six centers in 2015 ▶ 82 centers in 2016) Results of Creation of Reliable and Safe Childrearing Environment • Number of children receiving childcare and childrearing support 1.45 million
▶
2012
• Professional counselors for assistant and substitute teachers
2.45 million
383
2015
2012
2012
▶
19,866 counselors 2015
• Improved conditions for daycare teachers
• Surveillance camera installation rate
0.1%
▶
99.9%
KRW 103.6 billion
2015
2012
72
▶
KRW 372.2 billion 2015
Brief Summary of the Last Three Years of the Park Geun-hye Administration
73
Brief Summary of the Last Three Years of the Park Geun-hye Administration
5 Normalization of abnormal government practices through the eradication of corruption and bribery 5—1 Established legal framework for the prevention of corruption and bribery
5. Normalization of abnormal government practices through the eradication of corruption and bribery
5-1 Established legal framework for the prevention of corruption and bribery ●
Public sector integrity of the Republic of Korea:
Ranked 37th among 168 countries and 27th among 34 OECD countries (Transparency International’s Corruption Perceptions Index (CPI) by country, 2015) ●
A large majority of Korean citizens believe that the
level of corruption among national assemblymen and high-ranking public officials is the most serious among other groups of people ●
Prepared legal system
• Efforts to eliminate corruption without sanctuary and improve ineffective regulations and rules and irrational practices in order to create an upright nation, ethical and transparent government, and an honest society • Revision of Public Service Ethics Act, prevention of favoritism, and improved fairness in the execution of government affairs • Root out bribery and corruption of public officials through the Anti-Corruption Act and Public Service Ethics Act
76
Brief Summary of the Last Three Years of the Park Geun-hye Administration
Citizens’ Perception of Corruption
Top GDP Countries
“Our society is corrupt”
“Rate of Loss Due to Corruption”
62.8%
17.0%
2014 Corruption Perceptions Research by the AntiCorruption and Civil Rights Commission
Estimated by the Asian Development Bank (ADB)
2015 Corruption Perceptions Index (CPI) Rankings
Index for Major Economies of the Organization for
91
Denmark 1
Economic Cooperation and
90
Finland 2
Development (OECD)
89
Sweden 3
1 Denmark
88
New Zealand 4
85
Singapore 8
4 Zealand
75
Hong Kong 18 Japan 18
South Korea 37 China 83
8
North Korea 167 0
37
56
89
New
76
USA 16
90
3 Sweden
81
UK 10
91
2 Finland
81
Germany 10
Somalia 167
2015 Corruption Perceptions
15 USA
75
17 Japan
South
27 Korea
8
20 40 60 80 100
88 76 75 56
Source: Transparency International Korea
77
Brief Summary of the Last Three Years of the Park Geun-hye Administration
6 Reorganized inter-Korean relations through strong security and a principled stance 6—1 Promotion of the normal development of inter-Korean relations
6—2 Consistent promotion of the “Trust-building Process on the Korean Peninsula”
6—3 Made efforts to enrich the lifestyle, environment, and culture of the North Korean people and fundamentally resolve the issue of divided families
6—4 Making practical preparations for the unification of the Korean peninsula through the founding of a public-private partnership committee
6. Reorganized inter-Korean relations through strong security and a principled stance
6-1 Promotion of the normal development of inter-Korean relations ●
First administration in history to designate the
establishment of a foundation for the peaceful unification of the two Koreas as a national agenda • Specified vision for the unification of the Korean peninsula and formed a consensus on unification domestically and internationally ●
Speech on “An Initiative for Peaceful Unification on
the Korean Peninsula” (March 28, 2014, Dresden Speech) • Establish infrastructure to support the lives of North Koreans with a focus on livelihood, culture, and environment • Restore the national homogeneity of the two Koreas • Promote the expansion of exchange and cooperation as a means of preparing for the unification of the Korean peninsula
80
Brief Summary of the Last Three Years of the Park Geun-hye Administration
6-2 Consistent promotion of the “Trustbuilding Process on the Korean Peninsula” ●
Trust-Building Process on the Korean Peninsula
• Decisive response based on strong national security against North Korea’s provocations • Improved practices regarding inter-Korean dialogues and cooperation that conform to rules and principles • Opening a path to de facto cooperation in order to contribute to the restoration of national homogeneity and enhanced quality of life for North Korean residents • A policy to invite North Korea to join the trust-building process with the goal of achieving peaceful unification on the Korean peninsula ●
Total suspension of the Gaesong Industrial Complex
due to North Korea’s fourth nuclear test and long range missile launch • Responding firmly to North Korea’s nuclear tests according to a “no tolerance” philosophy in order to punish the North for its provocations and prevent the Kaesong Industrial Complex from being used for the development and production of nuclear weapons and missiles
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6. Reorganized inter-Korean relations through strong security and a principled stance
6-3 Made efforts to enrich the lifestyle, environment, and culture of the North Korean people and fundamentally resolve the issue of divided families ●
Promote exchanges of history, academia, culture,
and sports on non-governmental level with the goal of contributing to the restoration of national homogeneity • Expand cultural exchanges and strengthen national homogeneity between the two Koreas through joint efforts, such as the joint excavation of Manwoldae Palace in Gaesong and joint hosting of a special inter-Korean exhibition • Announcement of the “Government’s position on non governmental exchanges for the restoration of national homogeneity on the 70th anniversary of Korea’s liberation from Japanese rule” (May 1, 2015) • 297 cases of inter-Korean encounters in 2015 (35-percent increase over that of 2014) and 1940 South Korean visitors to North Korea (more than four times as many as the previous year) ●
Promotion of humanitarian support for socially
disadvantaged citizens regardless of the political situation • A program to support pregnant mothers and infants in
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
North Korea (total of USD 31.49 million between 2013 and 2015) • Resume support from Inter-Korean Fund for non governmental humanitarian and cooperation projects and relax conditions for businesses offering humanitarian support to North Korea • On-site monitoring by government officials in support of international NGOs’ vaccination projects for North Korean residents • The Park administration instituted a tentative suspension of the transfer of goods from North Korea as well as visits and access to North Korea in order to ensure the safety of Korean citizens, and requested that North Korea change its attitude so as to prevent the foundation for inter- Korean cooperation from weakening further Category
Encounter
2013
197cases
2014
219cases
2015
297cases
Total
713cases
Visits North Korea
175people
445people
1,940people
2,560people
Support for North Korea
KRW 18.3 billion
KRW 19.5 billion
KRW 25.4 billion
KRW 63.2 billion
Visits South Korea
40people
366people
4people
410people
●
Efforts to fundamentally resolve the divided families
issue • Proposed to North Korea the exchange of a list of names so as to confirm the status of the members of divided families (Congratulatory Remarks on the Korean Liberation Day, August 15, 2015) • Agreed to hold reunion events around Chuseok holidays and continue them in the following years (Inter-
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6. Reorganized inter-Korean relations through strong security and a principled stance
Korean High-level Meeting, August 22-24, 2015) • Second reunion for divided families on October 2015, following the reunion on February 2014, since the inauguration of the new administration (Total of 633 families and 4,497 people from both the South and North Koreas confirmed the names of surviving or deceased family members; a total of 356 families and 1,785 people reunited with their family members)
6-4 Making practical preparations for the unification of the Korean peninsula through the founding of a public-private partnership committee ●
Launched the Presidential Committee for Unification
Preparation to conduct the following tasks. • Propose a blueprint for unification • Provide humanitarian support and established infrastructure • Work toward peace on the Korean peninsula and international cooperation • Pursue mutually beneficial integration of the ecosystems of the two Korea’s • Promote close cooperation between experts from the private sector, government departments, and politicians, such as chairs of policy committees of political parties
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
• Governmental consultative body: Begun construction to connect the Gyeongwon Line on the South Korean side (August 5, 2015)
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
7 Strengthened international status of Korea through “Trust Diplomacy,” prioritizing national interests 7—1 Improved international status of Korea through increased contribution to the international community and strengthened leadership
7. Strengthened international status of Korea through “Trust Diplomacy,” prioritizing national interests
7-1 Improved international status of Korea through increased contribution to the international community and strengthened leadership ●
Active participation in efforts to resolve various
development agenda • Priority placed on capacity building in countries with poor public health conditions (September 2015 Global Health Security Agenda, High-Level Meeting in Seoul, “Safe Life for All”) • Importance placed on the health and education of girls in developing and underdeveloped countries (September 2015 UN Development Summit and General Assembly, “Better Life for Girls”) • Supported the efforts of developing countries to develop farming areas (Saemaul Movement, “21st Century New Farming Village Paradigm”) • Emphasized development in the science sector (December 2015, visited UNESCO and announced “STI for Better Life” and “Better Education for Africa [BEAR]” projects) ●
International contribution related to health
• Dispatched the Korea Disaster Response Team (KDRT) to Sierra Leon, total of 35 people between December 2014 and March 2015 (24 medical workers and 11 support personnel)
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
• Provided health-related services, such as identifying and treating Ebola patients and handling bodies of the deceased ●
Serving as chair for 10 international organizations and
conferences under the UN’s three major areas of interest • Peace and security: - IAEA ministerial-level International Conference on Nuclear Security chairmanship (2016) - Nuclear Suppliers Group (NSG) chairmanship (2016-2017) - Missile Technology Control Regime (MTCR) chairmanship (2016-2017) - Financial Action Task Force (FATF) chairmanship (2015-2016) • Development and climate change: - UN Economic and Social Council (ECOSOC) chairmanship (2015-2016) - Intergovernmental Panel on Climate Change (IPCC) chairmanship (2015-2022) - Multilateral Organization Performance Assessment Network (MOPAN) chairmanship (2016) • Human rights and culture: - UN Human Rights Council chairmanship (2016), - Conference of States Parties to the Committee on the Rights of Persons with Disabilities chairmanship (2015-2016) - Bureau International des Expositions (BIE) executive directorship (2016-2017) • Two Korean heads of international organizations (UN Secretary General Ban Ki-moon and IMO Secretary General Lim Ki-tack)
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7. Strengthened international status of Korea through “Trust Diplomacy,” prioritizing national interests ●
Successful hosting of major international conferences
• Global Conference on Cyberspace (October 2013, Seoul) • World Water Forum (April 2015, Daegu) • World Education Forum (May 2015, Incheon) • Global Health Security Agenda, 2nd High-Level Meeting (September 2015, Seoul)
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Brief Summary of the Last Three Years of the Park Geun-hye Administration
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Brief Summary of the Last Three Years of the Park Geun-hye Administration