South Korea's Yoon apologises over handbag scandal, pledges focus on economy

SEOUL — South Korean President Yoon Suk-yeol conceded on Thursday (May 9) that his ruling party's crushing election defeat last month reflected the government's failure to improve people's lives, and apologised for a scandal involving his wife.

He continued to reject calls by opposition lawmakers for a special probe into allegations that the First Lady had inappropriately accepted a pricey Christian Dior handbag as a gift last year, even as prosecutors begin investigating whether she broke any laws.

In his first press conference in 21 months, Yoon pledged instead to focus on improving the economy and tackling what he called the national emergency of flagging birth rates over the three years he has left in office.

"I think the important thing going forward is indeed the economy," he said.

"Corporate growth and job creation are important too but what I think is more important is to try harder to look for what is inconvenient in the life of each and every person and to resolve them."

South Korea's economy beat most forecasts to grow 1.3 per cent in the first three months of this year, though living costs have remained stubbornly high despite some progress in tackling inflation.

In a new policy push, a government ministry will be set up to tackle the record low birth rate and fast-ageing population, Yoon said in opening remarks from his office, behind a plaque reading "The Buck Stops Here."

"This is not a matter we can take time to work on," he said.

South Korea's fertility rate, already the world's lowest, maintained its dramatic decline in 2023, as women cited concerns about bearing most of the burden for raising children, lost career opportunities, and the financial cost of raising children as reasons to delay childbirth