President Yoon Suk Yeol speaks during a press conference on the occasion of his two-year anniversary in office at the presidential office in central Seoul's Yongsan District, Thursday. Yonhap

President Yoon Suk Yeol vowed support for semiconductor manufacturers "within the fullest extent of the fiscal means," responding to calls to provide direct government subsidies to fortify the competitiveness of the country's growth driver, which accounts for about a fifth of exports, Thursday.

Tempering soaring prices of fresh food, agricultural produce and dining out has been and will continue to be the top priority for the administration, he said, as aided and controlled by greater government subsidies and lowering or outright lifting of import duties.

These are the key economic takeaways from the press conference held at the presidential office in central Seoul's Yongsan District on the two-year anniversary of his administration.

"The government is and will continue to be adamant in providing the fullest support for the semiconductor manufacturing industry, fully aware of the critical role in the economy," Yoon said during the press conference.

"The assistance largely encompasses deregulation in construction and infrastructure building, including electricity and water. Tax credits have been expanded, despite what many have dubbed tax cuts for the rich and large conglomerates."

The government is concerned about surging prices undercutting household purchasing power and is continuing efforts to lower the increases.

"The price authorities are closely monitoring the prices of goods frequently purchased and therefore closely tied to consumer confidence. We plan to control prices with greater emergency funds in the produce market and diversify sources of raw materials imports, coupled with lowering or exempting import duties," the president said.

President Yoon Suk Yeol delivers a speech before the press conference on the occasion of the two-year anniversary of his administration at the presidential office in central Seoul's Yongsan, Thursday. Yonhap

A capital gains tax on financial investment scheduled to take effect next year must be scrapped, he added, to limit aftereffects of capital flight from the local financial market already held back by chronic stagnation of undervalued shares.

Korea will experience major market tumbles — a development with far-reaching consequences beyond hurting retail investors, he added. Equally at risk are months of efforts to advance the capital markets under the Corporate Value-up Program.

"The 14 million retail investors will bear the full brunt of the tax. The country's real economy caught in the crossfire will slump altogether amid a low-growth economy, with the long-term survival of the financial market on the line," he said.

"I implore the National Assembly for cooperation in abolishing the envisioned law."

The government's Corporate Value-up Program is taking flak from the market due mostly to a lack of binding specifics.

However, the long-term policy efficacy will prove highly relevant, as guaranteed by gradual participation of local listed firms in the years to come, he said.

"It is not so much about the short-term profit the government drives to generate as the future course of Korea's capital market in decades to come. A steady and slow push will guide the market participants to reevaluate the growth prospects of the local financial market."

Heavy taxes on property owners distort market-oriented policies, ending up crippling tenants in the form of higher rents with their living arrangements undermined, he said.

"Increase in taxes on homeowners will translate directly into higher jeonse deposits or monthly rents, as evidenced by jeonse prices spiking nearly to the sales prices of homes a few years ago. Taxes should be levied only to the extent that they do not trigger or amplify distortion in the market-oriented economy," he said.

"Jeonse" is Korea's unique leasing system where tenants furnish landlords with a lump-sum refundable deposit in lieu of monthly rent payments.

Housing policies should instead focus on ensuring supply, deregulated redevelopment and reconstruction and extending affordable financing for would-be homebuyers, he said.

"The balance between supply and demand will be restored, as calibrated by placing equitable weight on the needs of tenants for housing and property owners with asset augmentation considerations."