By Lee Hyo-sik
Staff Reporter

Deputy Prime Minister and Finance-Economy Minster Lee Hun-jai on Wednesday described the Roh Moo-hyun administration as center-right since it promotes the market economy and social integration.

Lee said in economic policies, President Roh is more conservative than U.S. Democratic presidential contender John Kerry but more progressive than President George Bush.

In a forum arranged by broadcasters at the Lexington Hotel in Yoido yesterday, Lee dismissed the view that Roh’s policies tend to focus more on the redistribution of wealth than on economic growth. He said market principles play an important role in the formulation of economic policies under the current administration.

He stressed that Roh’s policies are based on a position that ``leans to the right.’’

Immediately after Roh’s victory in the presidential election of 2002, many progressive advisors participated in the formation of a presidential committee. During the transition period, many people thought the Roh administration was leaning to the left, he said. `` But after taking an oath of office on February last year, Roh’s policy has been anchored at the center-right,’’ the minister said.

``The government is determined to follow market principles as well as build a sound and workable social safety net,’’ Lee added.

In response to a question regarding the nature of his working relationship with Roh, Lee said that they share similar ideas concerning economics and philosophy, adding that he is in charge of coordinating and supervising the government’s economic policies.

He predicted that the economy is expected to expand by 5 percent or higher next year since consumer and producer prices have recently shown signs of stabilizing and domestic consumption has started to pick up. He dismissed the possibility of a prolonged economic slump and stagflation.

Lee added the government plans to use all necessary fiscal tools to achieve 5 percent growth next year.

In another speech in a meeting with economists and businessmen in Seoul yesterday, the minister said South Korea should endeavor to join the ranks of the world’s advanced countries within 15 years as the nation is likely to struggle in supporting a rapidly aging population.

Korea is expected to see its national productivity decline in the future as a smaller economically active population will be required to support an increasing number of seniors as a result of the falling birth rate and increaseing life-expectancy,’’ Lee said.

``The government will develop effective and comprehensive measures to deal with the problem, such as expanding investments in projects for research and development (R&D) in the field of science and technology, and fostering a new engine for economic growth,’’ Lee stressed.

The government also plans to increase its spending on social welfare and education while reducing the proportion of the budget allocated to economic activities.

leehs@koreatimes.co.kr