[Lee·Yoon Pledge Comparative Analysis] Lee Jae-myung's 'Transformative Fair Growth' vs Yoon Seok-yeol's 'Private Sector-Led Innovation'

Lee Jae-myung, the Democratic Party presidential candidate [Image source=Yonhap News]

Lee Jae-myung's 'Transitional Fair Growth'... Reforming Unfairness and Inequality with Strong Leadership

[Sejong=Asia Economy reporters Son Seon-hee, Moon Chae-seok] The first pledge of Lee Jae-myung, the Democratic Party presidential candidate, called 'Transitional Fair Growth,' centers on overcoming unfairness and inequality to restore the 'efficiency of national resources.'

He aims to lead large-scale government-led investment, industrial restructuring, and fostering of new industries based on strong leadership. Lee repeatedly emphasized the government's role as a fair order maintainer, restoring the balance of power between capital and labor, and the courage and drive of a leader willing to endure resistance from vested interests. He introduced the so-called 'basic series' including basic income, basic housing, and basic finance, calling it a 'welfare-oriented economic policy.' He explained it as a two-birds-with-one-stone complex policy that doubles fiscal efficiency.

Economists express strong doubts at this point. They point out that the slogan of welfare-oriented economic policy lacks substance in economics and may be an extension of 'income-led growth,' which even disappeared during the Moon Jae-in administration.

Kang Sung-jin, professor of economics at Korea University, criticized, "The idea is to increase consumption by raising welfare spending and thereby promote growth, but to increase that demand, they ultimately intend to worsen distribution indicators through basic income." He added, "Basic income, which is distributed equally to all citizens, is actually a policy that worsens income distribution and could rekindle controversies like the past free school meals debate. It is merely a subjective claim and not logical."

Seong Tae-yoon, professor of economics at Yonsei University, also said, "The biggest problem with basic income is that it is being packaged as a growth policy like income-led growth, even though it is not." He added, "Of course, it may help growth to some extent, but it cannot be the core axis. Ultimately, it carries the same problems as income-led growth." Regarding Lee's emphasis on the role of the state or government, Professor Seong expressed concern, saying, "The public sector can support infrastructure and such, but growth must ultimately be led by the private sector," and "Various inefficiencies and fiscal burdens will inevitably increase."

Yoon Seok-yeol, the People Power Party presidential candidate Photo by Yonhap News

Yoon Seok-youl's 'Private-led Innovation'... Reviving the 'Growth Ladder' with Bold Support for Startups

Yoon Seok-youl, the People Power Party presidential candidate, envisions a 'structural reform' that supports startups to grow from small to medium to large enterprises, rather than the government simply creating jobs. On the 21st, Yoon used the phrase "Moon Jae-in government is a fake job government" on social media, which reflects his 'job policy philosophy.' He proposed 'employment flexibility' measures such as expanding flexible work hours, encouraging choosing between full-time and part-time employment, and supporting overseas job searches. This implies prioritizing such policies over 'welfare' for vulnerable employment groups like youth, career-interrupted women, and older workers.

He presented revitalizing private-sector entrepreneurship and restoring the 'growth ladder' for startups as core policies, adhering to the principle of 'growth first, distribution later.' Yoon said, "Jobs are not created by the government but by companies and daring, creative individuals," and "We will boldly support companies that create jobs and youth startup ventures."

Experts say that prioritizing employment and proposing private-sector-led structural reform is a seemingly reasonable economic diagnosis and solution. It is seen as a meaningful signal that can stimulate companies' willingness to create jobs. However, they also urge that specific solutions be added on how to implement costly policies like universal employment insurance and how to adjust the pace of public job policies implemented by the Moon Jae-in government to accurately assess the effects.

Professor Seong evaluated, "Unlike Lee Jae-myung of the Democratic Party, who raised the banner of 'Transitional Fair Growth' but proposed carbon tax measures unrelated to growth, and the Moon Jae-in government that tried to create jobs by raising the minimum wage, Yoon's policy direction of 'raising wages through jobs' is considered desirable."