Will the Rivalry Between Economic Experts Materialize... Spotlight on Kim Dong-yeon and Yoo Seung-min's Political Moves

Former Deputy Prime Minister Kim Dong-yeon Launches Active Volunteer Work
"Serious Income and Asset Gaps, Need to Create More Opportunities"
"Passionate About Solving Housing Issues" Yoo Seung-min Takes First Step Toward Presidential Bid
Rival 'Economic Expert' if Running as Opposition Presidential Candidate
Clashed Over 'Soju-seong' at 2018 National Assembly Audit

Former Deputy Prime Minister for Economic Affairs Kim Dong-yeon is answering questions from the press before entering the Myeongdong Cathedral premises to volunteer at the Myeongdong Soup Kitchen, a free meal service for the homeless, located inside Myeongdong Cathedral in Jung-gu, Seoul, on the 20th. / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] Attention is focused on the presidential candidacy possibilities of former Deputy Prime Minister for Economic Affairs Kim Dong-yeon and former People Power Party lawmaker Yoo Seung-min, both known as 'economic experts' in the political sphere. The two, regarded as leading presidential hopefuls, are actively engaging in political activities while pointing out domestic economic issues such as income polarization and real estate. This has led to speculation that these two, who previously clashed over the Moon Jae-in administration's 'income-led growth' policy, could emerge as rivals in the next presidential election.

◆"Polarization in our society is severe" ? Kim Dong-yeon continues political activities

Former Deputy Prime Minister Kim has recently been continuing his political activities, including visiting pig farms and participating in free meal service volunteer work for the homeless.

On the 18th, Kim helped distribute free meals at Myeongdong Cathedral in Jung-gu, Seoul. In an interview with the press, he described it as a "purely voluntary activity," distancing himself from political interpretations. However, when asked about being mentioned as a presidential candidate, he responded with a smile, neither fully denying nor confirming his candidacy.

He also criticized state-controlled economy and wealth polarization issues. He stated, "The problems of the Republic of Korea are threefold: excessive state intervention, excessive disparity, and excessive distrust," adding, "We are witnessing a centralized control system where government intervention is dominant, and polarization due to income and asset gaps has become so severe that it threatens the sustainability of society."

He emphasized, "More opportunities are not being created, nor are opportunities being distributed more evenly," and stressed the need to "create a 'Republic of Opportunity' to increase economic development and social dynamism."

Kim, who served as the first Deputy Prime Minister for Economic Affairs under the Moon Jae-in administration, drew attention during his tenure for expressing his views on key government policies such as income-led growth and minimum wage increases, calling for "speed adjustments" and "supplementary measures." Consequently, some speculate that Kim might run as a presidential candidate from the opposition rather than the ruling party.

Regarding this, when asked if he is considering joining the People Power Party, Kim avoided the topic, saying, "I don't think this is the right time to talk about that. Let's leave it at this." However, he drew a line on Democratic Party leader Song Young-gil's earlier remark that Kim's sentiments are closer to the Democratic Party, stating, "That is just his opinion."

On the afternoon of the 20th, at a cafe in Dalseo-gu, Daegu, former lawmaker Yoo Seung-min (left), a presidential candidate from the People Power Party, and former Dongyang University professor Jin Joong-kwon are having a conversation at the founding general meeting of the 'Hope 22 Companion Forum.' / Photo by Yonhap News

◆"Passionate about solving job and housing issues" ? Yoo Seung-min begins first presidential campaign activities

Meanwhile, Yoo Seung-min, a leading opposition presidential hopeful, began his first presidential campaign activities on the 20th in Daegu. On that day, Yoo founded the support group 'Hope 22 Companion Forum' and gave a lecture titled 'True Change in Conservative Politics.' Former Dongyang University professor Jin Joong-kwon also attended the lecture.

Yoo said, "I have no desire for the position or power of the president," adding, "I am passionate and obsessed with solving problems that only the President of the Republic of Korea can address, such as your jobs, housing, reviving our economy, and protecting the safety of the nation."

He continued, "True fairness is the state's duty to make efforts to ensure everyone starts from the same starting line and to level the playing field for fair competition," emphasizing, "I hope to start a journey with you to solve the problems of this era, not a regime that wastes five years in power."

◆Rivals as opposition candidates 'economic experts'... past heated debates over 'income-led growth'

There is also a view that former Deputy Prime Minister Kim and former lawmaker Yoo could compete as 'economic expert' presidential candidates from the opposition. The two previously engaged in intense debates over government policies in 2018.

At the time, during a comprehensive audit by the National Assembly's Planning and Finance Committee, Yoo said, "The Moon Jae-in government started talking about wage-led growth in 2012, then shifted to income-led growth, and the Blue House is full of people who absolutely refuse to abandon this dogma or fallacy," emphasizing, "It is time to abandon income-led growth and make a major shift in economic policy."

In the comprehensive audit of state affairs held by the Planning and Finance Committee at the National Assembly in 2018, Yoo Seung-min, then a member of the Bareunmirae Party (predecessor of the People Power Party), and Kim Dong-yeon, then Deputy Prime Minister for Economy, engaged in a heated exchange. / Photo by JTBC

He also criticized Kim, saying, "I thought the Ministry of Economy and Finance was reluctantly implementing income-led growth under pressure from the Blue House, but now it seems that this is the Deputy Prime Minister's own conviction and philosophy," adding, "How can one's philosophy change in just a year and a half? If we continue on this path, destruction awaits."

In response, Kim said, "I find it difficult to readily agree with continuing to frame the debate around terminology. Income-led growth and innovation-led growth are not just about growth; the government cannot talk about growth without addressing issues like distribution," and added, "The important thing is not the frame but the path our economy should take."

Regarding Yoo's claim that continuing income-led growth will lead to destruction, Kim responded, "I do not agree," and said, "I believe such a situation will not occur, and we will be fully prepared for downside risks and instability."