South Korea’s Yoon apologises over wife’s Dior handbag, vows to improve livelihoods

In his first news conference in about two years, Yoon pledged on Thursday to improve livelihoods and create a new ministry to boost the country’s birth rate, which is ranked lowest in the world and threatens long-term economic prospects.

He also laid out priorities for his remaining time in office, which include taming inflation, boosting growth led by the private sector and raising the basic pension for senior citizens to 400,000 won (US$292) a month. Shares of South Korean companies related to baby products and services soared on Yoon’s plans to increase the birth rate.

The president has little room to manoeuvre for the remainder of his single, five-year term after the election last month in which the opposition bloc led by the progressive Democratic Party increased its majority in parliament.

“For the next three years, we will listen closely to the voice of the people and work to improve their livelihoods,” Yoon said. His government, which backs business-friendly policies, has fallen short in some areas but added there are “green lights” ahead for the economy, the president said.

Last month, the central bank held its key rate at 3.5 per cent for a 10th consecutive time, pledging to keep its focus on fighting inflation. The economy grew more than twice as fast as expected in the first quarter largely thanks to export growth and a rebound in construction investment.

“I apologise for causing concern to the public due to my wife’s unwise behaviour,” Yoon said at the news conference.

On Tuesday, Yoon appointed a former prosecutor as the new senior secretary to the president for civil affairs, a post he had previously removed, citing excessive power it could wield on government agencies, including the prosecutors’ office. Yoon