President Yoon Suk Yeol sought parliamentary support for the passage of next year's state budget as he called for all-encompassing structural reforms of the nation's economy and society to generate sustainable growth.

In an annual policy address at the National Assembly on Tuesday, Yoon said his administration's financial philosophy is based on fiscal soundness concerning not just a reduction in expenditure but also the proper and effective utilization of taxpayers’ money.

In a bid to avoid passing down untenable debt to future generations, the president said the government has conducted a zero-based review of all financial projects to reduce expenses surplus to the objective or those involving irregularities.

He said 23 trillion won, or around 17 billion U.S. dollars, in restructured funds will be redirected to bolster basic state functions such as national defense, education and health, as well as to protect the socially vulnerable and secure future growth momentum.

The annual increase in next year's budget, meanwhile, has been kept to a near-20-year low of two-point-eight percent.

On the administration's continued push to reform the country's pension plan, labor sector and education system, Yoon stressed the importance of bipartisan agreement and promised active participation and support from the government for parliament as it draws up a revision bill.

The president said the ongoing labor reform efforts will aim to promote a transparent and trusted labor movement, while reforms in education will strive to foster future talent based on diversity and openness to global competitiveness.

Emphasizing that national security is the cornerstone of the economy, he said Seoul is strongly responding to Pyongyang's provocations while bolstering the extended nuclear deterrence with the U.S. through the allies’ nuclear consultative group.

Regarding improved Seoul-Tokyo relations, the president talked about enhanced economic cooperation in terms of the latter's lifting of export curbs on semiconductor materials, the reciprocal export whitelist reclassification and the currency swap resumption.