The annual session was intended for far-reaching discussions on the direction of the country's fiscal policy.

Moon emphasized that South Korea will have to pay a bigger price unless it handles the current problems actively and thoroughly.

He said his administration has initiated a drive toward an "innovative, inclusive" nation over the two years.

Its signature economic reform measures include the income-led growth strategy, the introduction of a 52-hour workweek system and support for small and medium-sized firms as well as efforts to phase out nuclear energy use.

"Now is time to step on the accelerator pedal," he stressed, instructing government officials to step up efforts for concrete accomplishments from new policies. His five-year tenure ends in May 2022.

In particular, the president said, it's "painful" to see the difficulties of the self-employed and people in the low-income bracket.

"In that sense, I earnestly ask the National Assembly to normalize its operation and discuss the government's extra budget bill at an early date," he said. "In case of supplementary budgets, 'timing' and 'speed' are very important."

The government has proposed 6.7 trillion-won (US$5.8 billion) supplementary budgets for use in various projects, which include those to revitalize the economy, tackle air pollution and recover from a recent wildfire in Gangwon Province. (Yonhap)