"Government Should Entrust Economy to Private Sector to Achieve Innovation"

National Management Strategy Institute Demand Forum Held
Byun Yang-ho "Special Act Needed to Immediately Lift Regulations Upon Corporate Standard Certification"

[Asia Economy Reporter Jang Sehee] A former high-ranking official expressed the opinion that if the government's role becomes excessively large, it is difficult for the private economy to gain vitality.

On the 1st, Byun Yang-ho, former Director of the Financial Policy Bureau at the Ministry of Finance and Economy, attended the demand forum of the National Strategy Institute (NSI) held at the Press Center in Jung-gu, Seoul, and emphasized the importance of the market economy, saying, "If the economy is entrusted to the private sector, innovation can be achieved."

Byun criticized, "What the government should do is liberalization, not economic innovation."

In his lecture that day, Byun stated, "If the private sector proves the standards, special laws that immediately ease regulations should be enacted." This was a criticism of the current situation where regulatory reform for new industries is not progressing quickly.

He continued, "Job creation should be left to the private sector, and the government should support individuals in difficulty," emphasizing the need to clarify the roles of the market and government. He believed that government-funded jobs have limitations in improving both quantity and quality.

He stressed that the private sector should not have fear regarding employment. Byun said, "Regulations on economic activities by labor unions should also be abolished," and added, "The nature of labor unions must change for jobs to increase."

He also pointed out the continuation of "expansionary fiscal policy" during the COVID-19 response process. Byun criticized, "The government's unplanned spending will become vested interests and make future reforms difficult." He added, "Rather, reforming the National Pension would be more effective as a measure against low birth rates."

In connection with this issue, he proposed the idea of a negative tax. Byun advocated for a "negative income tax," meaning the government should not collect money from the people but rather return money to them. He limited the payment to 500,000 KRW per month for adults with no income and 300,000 KRW per month for those under 18 years old. The payment would be made uniformly through the National Tax Service.

Finally, Byun emphasized that market principles and welfare should be pursued together. He said, "We must value market principles such as fair competition and freedom of economic activities," and added, "At the same time, a meaningful social safety net that can heal the side effects of the market must also be established."