YOON ON RESTRUCTURING PUBLIC SECTOR

[Anchor Lead]

"The party is over." President Yoon is warning of massive restructuring in the public sector. He has ordered the restructuring of government spending first in a bid to eliminate loopholes. He has also hinted at the possibility of downsizing the workforce and merging government agencies.

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President Yoon says the global economy has a bleak prospect. He says the public sector must tighten up its belt to set an example. Innovation of the public sector topped the agenda of the latest Cabinet meeting. Yoon pointed out that the number of public agencies and officials grew under the previous administration, whereas productivity declined and the amount of debt snowballed by 84 trillion won.

[Soundbite] Yoon Suk-yeol(President) : "Public agencies must be strictly evaluated, and any loopholes must be eliminated. We need to restructure gov‘t spending on a high level."

The president first ordered government spending be cut by selling off upscale government office buildings and unnecessary assets, and reducing welfare benefits. While no detailed discussion was held about cutting the public sector's workforce or merging state agencies, a presidential office official says every aspect will be deliberated. However, the official brushed away speculation that the president is pushing for the privatization of state agencies or trying to reshuffle them. Yoon also stressed price stabilization through regulatory reforms and tariff cuts as a way to overcome the economic crisis.

[Soundbite] Yoon Suk-yeol(President) : "Getting rid of cartels and unfair rent-seeking practices is how we can innovate regulations and improve the national economy."

However, restructuring state agencies or implementing regulatory reforms will take time, and expecting immediate results in overcoming the crisis would be difficult. Yoon says finding a fundamental solution to asset price adjustment is not easy. The presidential office says other countries are also struggling to find a once-and-for-all solution, adding the government is exerting various efforts to stabilize the national currency and consumer prices.