President Moon: "People Will See Changes with Their Own Eyes Within My Term"... Korean New Deal Emerging as a Presidential Election Factor Amid Opposition Criticism and Checks
[Asia Economy Reporter Ryu Jeong-min] “A lot of effort is needed to speed up.” This was stated by President Moon Jae-in on the 14th during a closed-door discussion at the National Report Meeting on the comprehensive plan for the ‘Korean New Deal.’ The Korean New Deal is an issue that President Moon is deeply committed to, to the extent that he defines it as the ‘Declaration of Korea’s Great Transformation.’
Although the official presidential term ends in May 2022, there is only 1 year and 10 months left, but the next presidential election (March 2022) is just 1 year and 8 months away.
Considering the ‘power vacuum’ due to the transfer of power at the end of the presidential term, the remaining time is not much. It would be fortunate for the ruling party if a government that inherits the Moon Jae-in administration’s state philosophy is born by successfully recreating the regime, but if the regime is lost, it will be difficult to expect smooth progress of mid- to long-term national tasks.
President Moon delivered a clear message to the Blue House, the Democratic Party of Korea, and each government ministry. He ordered them to show changes that the public can feel. President Moon warned, “The world before and after COVID-19 is fundamentally changing,” and “We must actively respond to these huge changes. If we fall behind, we will remain a permanent second-tier country.”
In particular, President Moon pledged, “Within our government’s term, the people will be able to see the changes with their own eyes.” What is noteworthy is that President Moon set specific numerical targets.
The Korean New Deal’s ten representative projects include ‘Data Dam,’ ‘Artificial Intelligence Government,’ ‘Smart Medical Infrastructure,’ ‘Green Remodeling,’ ‘Green Energy,’ ‘Eco-friendly Future Mobility,’ ‘Green Smart School,’ ‘Digital Twin,’ ‘SOC Digitalization,’ and ‘Smart Green Industrial Complex.’
On the 14th, citizens are watching President Moon Jae-in's 'Korean New Deal National Report Conference' in the waiting room of Seoul Station. Photo by Kang Jin-hyung aymsdream@
President Moon decided to invest 49 trillion won of national treasury funds by 2022, the ‘year of the presidential election,’ to focus support on the ten representative industries. The total investment, including national treasury and private funds, reaches 68 trillion won. The first goal of the Korean New Deal is to create 890,000 jobs by 2022 by investing this astronomical budget of 68 trillion won.
The difference between President Moon’s Korean New Deal plan and the Four Major Rivers Project during former President Lee Myung-bak’s administration is that it contains a ‘grand design’ to change the economic map of Korea through restructuring and investment in industrial sectors.
There are also significant challenges to ensure President Moon’s ambitious plan lands smoothly in reality. Maintaining control over state affairs is fundamental. As the president’s retirement approaches, it is inevitable that the Blue House’s control weakens. This is why efforts are being made to firmly establish the Korean New Deal project this year.
For the large-scale project investing 49 trillion won of national treasury funds by 2022 to gain momentum, full political support is essential. The problem is that to allocate such a huge budget, it must pass through the ‘gate of the opposition party.’ At a time when the presidential election is approaching, it is unlikely that the opposition party will act as a supporter of the ruling party’s state affairs.
If President Moon’s Korean New Deal plan leads to results, the benefits will inevitably go to the ruling party’s candidate. On the 15th, Hong Joon-pyo, former leader of the Liberty Korea Party, criticized on Facebook, saying, “Our people living in a country that has never experienced this before are pitiful under a person who only seeks to squander the national treasury, forgetting even their own term.”
On the same day, Yoo Ui-dong, a member of the Future United Party, pointed out in an interview with BBS Radio’s ‘Park Kyung-soo’s Morning Journal,’ “It is hard to see that issuing rosy promises that the current government cannot complete now is a sign of good overall strategic policy coordination, so I am very worried.”
However, the opposition party also faces the dilemma that it cannot blindly oppose the government’s ‘economic boom-up’ project. If it criticizes the policy’s problems without proposing alternatives, the opposition’s arguments will also lack strength.
Since President Moon is personally overseeing the Korean New Deal, it is expected to be the ruling party’s top priority project in the second half of this year. On the 14th, Democratic Party leader Lee Hae-chan, at a closed-door discussion attended by President Moon, said, “The president has made an important decision,” and ordered, “Each government ministry should have the execution power to intensively promote the Korean New Deal.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
