hankyoreh

Jan 2. (Photo by Kim Bong-gyu)

By Ahn Chang-hyun, Staff Writer

In his New Year's state-of-the-nation address Monday, President Lee Myung-bak gave "stable management of state affairs" as the governance goal for 2012, his last year in office.

The speech had other noteworthy moments, including the President’s open declaration of a shift in economic policy focusing on price stabilization and a gesture of conciliation towards North Korea as the President said, "We are opening a window opportunity."

Presenting "stabilization of working class livelihoods" as a governance goal regarding the economy, Lee emphasized prices and jobs. In particular, he said, "Whatever happens, I plan to keep inflation within the low 3% range." Lee did not give any economic growth target.

Cheong Wa Dae senior public relations secretary Choi Geum-nak said the President "nailed down the 3% figure in order to show his determination."

But the Ministry of Strategy and Finance issued a prediction last month of a 3.2% rise in consumer prices during the New Year. Observers said the declaration suffers from being simply a statement that the government would do everything in its power to meet its own estimates.

The view among experts is that with oil prices dropping due to a global economic slump, it will be possible to meet the 3% target provided no unexpected variables arise.

In a special New Year's speech in early January 2011, Lee stated economic growth above 5% and inflation not higher than 3% as goals for last year. As it turned out, the actual inflation rate for the year was 4.0%, and even this was lowered significantly by changes in the price index.

Since the death of Kim Jong-il, Lee has taken a slightly more open stance on North Korea, but has maintained the basic framework of his North Korea policy, insisting on "the cessation of North Korea's nuclear activities prior to resumption of the six-party talks" and "offering support for economic recovery after a six-party talks agreement" on denuclearization.

But Lee made no reference at all to the Cheonan sinking or the artillery attack on Yeonpyeong Island.

A senior Cheong Wa Dae official said, "His focus was on showing South Korea as reaching out so that North Korea can make whatever choice it wishes to."

"We will have to see whether North Korea takes that hand or brushes it away," the official added.

Experts responded coolly to the speech, contending that Seoul should make the first overtures to Pyongyang by suggesting cooperative efforts such as Red Cross talks.

University of North Korean Studies professor Yang Moo-jin said, "To say we are just going to wait at a time when uncertainty has increased on the Korean Peninsula is the same as saying we are not going to do anything."

"Inter-Korean relations are not going to get out of their funk for the next year," Yang predicted.

Lee also said he was "mortified" about improprieties by relatives, in-laws, and associates and the controversy over the purchasing of land in Seoul's Naegok neighborhood for the building of a retirement residence.

"I plan to examine myself and the people around be and manage matters more rigorously," he added.

This marks the first time Lee has directly apologized to the people of South Korea for an issue involving himself or his associates.

Lee was subjected to ethical denunciations after a number of associates of his older brother, lawmaker Lee Sang-deuk, and of his wife Kim Yoon-ok were implicated in scandals involving corruption.

Those situation were followed by flare-ups that implicated close associates of President Lee, such as former Vice Minister of Culture, Sports and Tourism Shin Jae-min. The Naegok land purchase issue prompted even conservative news outlets to turn their backs on Lee.

Choi Geum-nak said, "Since it was a New Year's address, there are some areas where he was unable to give specifics. There should be an opportunity some time soon for him to give a direct explanation.”

Please direct questions or comments to [englishhani@hani.co.kr]