[Asia Exclusive] Jo Daeyeop, Chair of Policy Planning Committee: "In the Last Year of Moon Government, We Will Make People Feel the Policy Effects"

On the 3rd of next month, 'Conscription System' Public Debate at Jiphyeon Forum... Chairman Cho: "Beyond Gender Discrimination Issue, as a 'Youth and Women Employment Solution'"

Cho Dae-yeop, Chairman of the Presidential Policy Planning Committee, is giving an interview to Asia Economy at his office in the Government Seoul Office Building on the 7th. Photo by Kim Hyun-min kimhyun81@

[Interview = Asia Economy Chief Economic Editor Choi Il-gwon, Organized by Reporter Son Seon-hee] "The older generation thinks fairness means taking care of the less fortunate and putting them on an 'equal starting line,' but the younger generation seems to think otherwise. They see that itself as a special privilege and unfairness. During the remaining term of the Moon Jae-in administration, we will strengthen 'empathetic communication' with the public so that people can feel in their daily lives, 'This is the effect of the policy of the government I chose.'

Cho Dae-yeop, Chairperson of the Presidential Policy Planning Committee, emphasized in an exclusive interview with Asia Economy on the 4th anniversary of the Moon Jae-in administration that policy efforts will be further concentrated on the core value of 'fairness.' Following the Incheon International Airport Corporation incident and the recent land speculation by internal employees of the Korea Land and Housing Corporation (LH), the value of 'fairness' has hit rock bottom, making it the top priority to address during the remaining term of the current government.

When we met Chairperson Cho at his office in the Government Complex Seoul on the 7th, he sighed as soon as the keyword 'youth' came up. The 20s generation is a 'sore spot' for the Moon Jae-in administration, which was launched based on the core values of 'equality, fairness, and justice.' After a few seconds of silence, he spoke gravely, saying, "We are contemplating how to solve this homework."

At this meeting, Chairperson Cho even mentioned the 'all-volunteer military system,' one of the hottest topics in the political arena. He stated that sensitive issues will be boldly discussed to prevent alienation of the youth's public sentiment. The Policy Planning Committee plans to address the all-volunteer military system at the 'Jiphyeon Forum' scheduled for the 3rd of next month, positioning itself as a public discussion platform.

However, Chairperson Cho was very cautious about the government’s efforts being perceived merely as an attempt to win back the alienated sentiment of 'I-namja (men in their 20s).' He said, "This is not simply limited to defense reform tasks or approached only as a gender discrimination issue. We need to consider the all-volunteer military system as a solution that can simultaneously address youth, women, and broader employment issues." He added, "If, after free discussion, it is the 'path we must take,' we can accelerate the process. If necessary, beyond recommendations, the party and government can take the lead and push it forward."

Chairperson Cho said he will continue to produce policy achievements during the remaining period of the current administration. At the end of the limited 'time of power,' a stern evaluation from the public awaits. He stressed, "Whether progressive or conservative, the government chosen by the people must inevitably create and accumulate policy achievements. Only then is there a future for the next stage."

Cho Dae-yeop, Chairman of the Presidential Policy Planning Committee, is giving an interview to Asia Economy at his office in the Government Seoul Office Building on the 7th. Photo by Kim Hyun-min kimhyun81@

Below is a Q&A with Chairperson Cho.

- How was the 4th anniversary conference of the Moon Jae-in administration?

▲ It was cautious. Some criticized it as 'self-praise.' The President repeatedly instructed to 'lower the tone and be as calm as possible.' He said in meetings that even for actual achievements, it should be emphasized that these results were made possible not because the government did well, but because the public and businesses participated at every stage. We seriously prepared with a good understanding of the President’s sentiment. Of course, there may be shortcomings, but it was an occasion to review the government's overall achievements and share them with the public.

- Looking back on the economic policy achievements over the four years since the Moon Jae-in administration began.

▲ (Regarding macroeconomic) indicators, compared internationally, I think we overcame the COVID-19 crisis well. There has been significant progress in transitioning to a digital economy through the Korean New Deal and in innovation growth sectors. Many unicorn companies (with asset values over 1 trillion won) have been created. Even looking at economic growth rates, Korea is among the leading groups in the OECD countries. It is regrettable that these achievements are less known.

- Jobs are still difficult, aren’t they?

▲ Although the employment crisis was very severe, we managed to hold up during the crisis. Our government started as a 'job government.' Compared to 2017, it is evaluated that more than 70% of the public job creation target (810,000 jobs) was achieved.

- It is hard to readily agree with the evaluation that job policies 'held up' given that private sector employment remains sluggish.

▲ COVID-19 caused a huge employment shock especially to those in the blind spots of employment insurance rather than regular workers. Compared to other countries, this part was relatively well maintained. Active fiscal policies supported self-employed and vulnerable groups to sustain their livelihoods.

- Do you think the 'expansionary fiscal policy' stance should be maintained going forward?

▲ Whenever necessary. Various indicators show fiscal soundness is maintained. Considering the unpredictability of mutant viruses and ongoing vaccine and treatment developments, large-scale fiscal injections may be needed at any time.

- The 'income-led growth (Soju-seong)' has reappeared; after four years, is it a success or failure?

▲ I absolutely do not think it is a failure. Since 2017, the Gini coefficient (income distribution indicator), relative poverty rate, and elderly poverty rate have shown slow but clear improvement trends. These parts are interpreted as effects of income-led growth.

- Income-led growth seems closer to 'welfare' than a growth strategy since it increased disposable income through fiscal means. Is it attacked because it tries to link this to growth?

▲ Growth and welfare are not strictly separated. They are interlocked as one wheel, operating holistically in a virtuous cycle. Nonetheless, in the unprecedented huge crisis we have faced, polarization and inequality expansion remain concerns.

- There is an ongoing debate on real estate policies such as easing comprehensive real estate tax and property tax.

▲ Real estate measures are always urgent tasks. Adjustments should be made within the scope that does not contradict the direction the government pursues.

- Regarding the Moon Jae-in administration’s promise on 'fairness,' do you think it has been well kept after four years?

▲ I am well aware that many people evaluate it as 'regrettable.' However, 'institutional fairness' and 'cultural fairness' must be distinguished. To create a just social order, institutions must be fair, and a culture that can spread this must be accepted. The first step to establishing institutional fairness is reforming power institutions to change the deeply rooted criminal justice system. The Moon Jae-in administration has pursued power institution reform with conviction more than any other government. What remains is cultural fairness, which is still an ongoing task. Speculation by employees of public institutions such as the Korea Land and Housing Corporation (LH) is unfairness in the cultural aspect and still exists in various places.

- Do you see that as an unresolved task?

▲ Yes. If cultural diffusion of fairness values is achieved through laws and systems, corruption issues will naturally be eradicated. Also, perceptions of fairness differ by generation. The Incheon International Airport Corporation incident, triggered by the policy of converting irregular workers to regular workers, is a representative example. The older generation thinks fairness means taking care of the less fortunate and putting them on an 'equal starting line,' but the youth seem to think otherwise. They see that itself as a special privilege and unfairness. This is an area requiring consensus among social members by generation. Dialogue is urgent. If this perception gap widens, there is a risk of expanding generational divides. Communication is important for social dialogue.

- What considerations does the Policy Planning Committee have to make the remaining year of the Moon Jae-in administration successful?

▲ We aim to strengthen 'empathetic communication' with the public. It is important for people to feel in their lives, 'This is the effect of the policy of the government I chose.' There have been many regrets in this area over the past four years. We plan to work harder in the remaining year. We also need to resolve the division in public opinion. Every administration has talked about 'integration,' but the tendency seems to be moving in the opposite direction. More frightening than the COVID crisis is the division of national opinion.