Ha Tae-kyung: "Freeze Minimum Wage During Term... Will Restore Economy to Original State"

[Image source=Yonhap News]

[Asia Economy Reporter Park Jun-yi] Ha Tae-kyung, a presidential candidate from the People Power Party, has promised to freeze the minimum wage during his presidential term. He argued that the Moon Jae-in administration's rapid increase in the minimum wage adversely affected low-income workers, self-employed individuals, and small businesses, thereby deepening social polarization.

On the 22nd, Ha held a press conference at the National Assembly and stated, "If I become president, I will freeze the minimum wage at 9,160 won, the level already set by the Moon administration for 2022," adding, "I will freeze the sharply increased minimum wage and restore the economy damaged by the Moon administration to its original state."

He pointed out the problems of the current government's income-led growth policy. Ha explained, "The rapid increase in the minimum wage under the Moon administration is a symbol of 'income-led growth,' and without considering the conditions and circumstances of the Korean economy, a 27.3% increase in the minimum wage was implemented over two years at the beginning of the term."

He then diagnosed, "The results were disastrous," saying, "Jobs decreased and social polarization worsened." He continued, "The benefits of the minimum wage increase were concentrated among large corporations, high-wage earners, and union members with strong job security in large companies," while "low-income workers lost both places and opportunities to work due to rising labor costs."

He also mentioned that the minimum wage increase rate dropped from 2.9% in 2020 to 1.5% in 2021, arguing that the Moon administration itself acknowledged the side effects of the rapid minimum wage increase.

In particular, he emphasized that self-employed individuals suffered from the minimum wage hike. Ha said, "The rapid minimum wage increase implemented by the Moon administration drove self-employed people and their workers out of the job market itself," adding, "Without any social countermeasures in place, the rapid increase in the minimum wage forced self-employed individuals and small businesses out of the market."

He stated, "We must stop experimenting with the people and the economy," and added, "We must not cause further suffering to the lives of the people through reckless economic experiments."