The Lee administration proposed its economic policy goal named ‘e-nomics (‘e’ sounds like his family name Lee)’. His goals can be categorized into 3 visions, 10 hopes, 43 objectives, and 92 promises. During his campaign, he stressed ‘747 (7% annual growth, 40,000 USD in the income per capita, and becoming the 7th biggest economy in the world)’, ‘3 million new jobs’, ‘nuclear free Korea and opening 3000 (opening the border of North Korea, not allowing the North to have nuclear weapons, and helping NK reach 3000 USD in the income per capita)’, ‘saving the budget by 20 trillion KRW’, and ‘increasing R&D budget in science and technology to 5% of the GDP’. Numbers in his campaign pledges signify his goals and future plans. The Lee administration pledged that it will ‘help Koreans to live better lives and make Korea more heartwarming and strong’ and, eventually, ‘turn the nation into one of the advanced nations and help people live a successful life’ by realizing and keeping its ‘3 visions, 10 hopes, 43 objectives, and 92 promises’. Among his 92 campaign pledges, those expressed in numbers like ‘747’ have detailed plans for execution devised during his presidential campaign.As the Grand National Party, Anguk Forum, professors outside the Lee Myung-bak camp, and economic experts already developed annual action plans, the transition committee thinks there’ll be little changes in campaign pledges. That’s why Mr. Lee said, “Ten people is enough to make plans that you are preparing for” and “We don’t need to devise new plans. We just need to arrange what has been proposed”, stressing practice rather than plan making in the New Year ceremony of the transition committee on January 1. ◇ 747‘747’ means ‘7% annual growth, 40,000 USD in the income per capita, and becoming the 7th biggest economy in the world.’ This number concisely expresses his economic policy. Mr. Lee and his team ignore what the finance minister Kwon O-kyu warned on January 1 at the New Year ceremony that the economic growth target should be 4% and are confident that the economy can reach 7% target. The new president and his team came up with the target number 7 after considering the economic growth rate during previous administrations of Park Chung-hee, Chun Doo-hwan, Roh Tae-woo, and Kim Dae-jung and the overseas economic situation. 7% target is 2.5% higher than the average growth rate of 4.5% of the Roh Moo-hyun administration from early 2003 to late 2006. The target is interpreted as the dissatisfaction of Mr. Lee and his team with the current administration’s economic policies which stress safety. The Chun government’s economic policies seem to be similar to those of the Lee administration. The new administration thinks it can achieve 7% goal by easing regulations and aggressively nurturing future growth engines. Like the Chun administration, Mr. Lee plans to tour overseas to invite more investment and the transition committee is considering the liberalization of regulations. “We will not artificially achieve the 7% target through the great canal project. The target can be achieved through easing regulations and developing growth potential,” said lawmaker Park Hyung-joon, the head of planning and arranging in the committee.◇ 3 million new jobs‘Three million new jobs’ also goes together with cutting the youth unemployment to 4%. Mr. Lee and the committee aim to reduce economic inefficiencies caused by rising unemployment rate and to prevent the waste of human resources. It’s like killing two birds by one stone. High unemployment rate is ‘the axis of evil’ that prevents growth and turns the public attention from growth to distribution. When the annual growth rate is raised from the current 4% to 7%, 600 thousand new jobs can be created each year and the five year total is 3 million new jobs. Software, media, and content industries require smaller capital investment and therefore are expected to be chief contributors of job creation. Former GNP chairman Park Geun-hye promised to reduce the size of the government, cut taxes, ease regulations, and encourage investments during the GNP primary. Her campaign pledges are reflected in Mr. Lee’s target.◇ nuclear free Korea and opening 3000 This means dealing with the North Korean nuclear issue and the economic development of the North at the same time. This strategy promises North Korea that the South will help the North to achieve income per capita of 3000 USD if the North abandons its nuclear ambition and opens its doors. This plan attracted lots of public attention. Income per capita of 3000 USD is the same as what the South reached in 1987. 1987 was the end of the Chun administration. 3000 means the initial stage to the informatized society and when people can have home appliances like TVs, refrigerators, and telephones in their houses. By securing 3000 USD, the North can establish information and communications network such as mobile communications, high-speed Internet, and fixed-line phones, begin to spend lots of electricity to watch TVs and use household appliances, and promote economic development further. At that time, it is expected that North Korea can create economic momentum by producing electronic devices and components in Sinuiju Special Administrative Region, Kaesong Special Administrative Region, and Haeju Special Economic Zone. ◇ saving the budget by 20 trillion KRWTo achieve this goal, the new government will cut unnecessary spending by assessing each ministry’s budget management more sternly, as well as cutting down the number of government organizations. To produce a tangible result in a short period of time, Mr. Lee plans to adopt the supervisory system where budget and settlement are interconnected, like what businesses do. He and his team plan to invest boldly, cut unnecessary spending thoroughly, and turn the remainder into another investment. ◇ increasing the R&D budget to 5% of the GDPHe promised to raise the R&D budget up to 5% of the GDP from the current 3.23% by 2012 with science and technology sectors. This promise is the same as what the Office of Science and Technology Innovation in the Ministry of Science and Technology proposed at the 2nd phase of the Basic Plan for National Science and Technology Development by 2012. That means the new government will continue and develop what the Roh administration has done in terms of science and technology. This is a mid- and long- term vision for the convergence industry, a new growth engine for South Korea. Under the plan, businesses will take care of applied science and the government will nurture core technologies and the total R&D budget will be raised from the current 25% to 50%.