Lee Jae-myung, the presidential candidate of the ruling Democratic Party, released his blueprint for economic growth on Jan. 11, calling for Korea’s per capita national income to rise to $50,000 and for the country to become a global top 5 economic power.
Lee envisages the economic growth through a state-initiated industry transition and reform in the public and financial sectors. Lee, who called the blueprint the “New Economy Vision,” reconfirmed a “philosophy of bigger government,” saying that political issues start from economic issues, and the government’s role is to protect people’s livelihood.”
The candidate held a ceremony to declare the New Economy Vision at the National Assembly and released his so-called “4:2:4 Initiative,” which calls for transformation in four fields; two reform steps and four action principles.
The blueprint is a kind of collection of campaigns pledges Lee has made so far in the economic and industry sectors.
The takeaways of the master plan are transformation in the science & technology, industry, education and land sectors.
Lee said, “Now is a golden time for great transformation,” emphasizing industry transformation among the sectors.
Lee said his government would invest 135 trillion won in digital transformation and create 2 million jobs in digital transformation and strive new industry transition, such as energy transition through an “energy highway.” Lee said his government would offer massive support to the manufacturing, service, and SME and venture sectors.
He pledged to secure manufacturing growth to achieve $50,000 in per capita national income, expanding the fund of funds for SME and venture firms to 10 trillion won, develop culture and service industries, such as K-content, and ramp up exports by raising the number of the world’s No. 1 exporting items to more than 100.
Lee stressed the nurturing of the conventional industries on top of fostering new industries. To this end, Lee made sure to execute reform in the public and financial sectors. In the public sector reform, Lee proposed hiring in opening contests, introducing a deputy minister in charge of science and technology, and inaugurating a government agency responsible for data.
He hinted at reorganizing the Ministry of Economy and Finance (MOEF) to harmonize authorities and responsibilities in the government’s functions of planning and budgeting.
Lee, stressing the development of the financial market, reaffirmed his promise to “open an era of 5,000 points” in the Korea Composite Stock Price Index or KOSPI.
His move may be construed as an attempt to overcome and eliminate the so-called Korea Discount. Lee stressed four action principles: speed, diffusion, pragmatism, and hope.
Lee said the success or failure of the new economy will ultimately depend on the government’s role. He stressed the government’s need to take a bigger role, saying that state’s massive investments and regulatory rationalization would determine whether policies will be a success or failure.
He said the keywords for the new economy are the expanding of infrastructure through the widening of the government’s roles, massive investments in the science and technology sector and the government’s being responsible for nurturing future manpower.
Lee hinted at readjusting speed, saying that the goal of raising the per capital income to $50,000, becoming a global top 5 power and raising KOSPI to 5,000 points are not goals that could be achieved during his term.
Yoon Seok-youl, the presidential nominee of the opposition People Power Party (PPP), announces policy pledges related to Seoul at PPP headquarters in Yeouido, Seoul, on Jan. 16. (Photo: PPP)
Economic Policies Ought to be Based on Private Sector’s Creativity and Innovation
On the contrary, Yoon Seok-youl, the nominee of the major opposition People Power Party, recognized the importance of fiscal roles, but excessive state debts would fall into a vicious cycle of the national economy. State debts, topping 1,000 trillion won, would deprive future generations’ opportunities, he said.
Yoon’s economic policies should be based on the private sector’s creativity and innovation, rather than state’s steering, and the government has to raise the nation’s potential growth rate by concentrating on regulatory reform and support to companies.
He claimed that growth would lead to creation of quality jobs and revenues allotted for welfare.
_이재명 신경제 비전 선포식01.jpg)
_윤석열후보 서울시 관련 정책공약발표.jpg)
