[2022 Economic Outlook Survey] The Must-Reflect Presidential Pledge Is "Deregulation"

Digital Transformation and Carbon Neutrality
Specific Policies Must Be Presented
Job Measures Also Needed

[Asia Economy Reporter Jang Sehee] Domestic economic experts unanimously called for "deregulation" as a topic that must be reflected in next year's presidential election pledges. They also emphasized that the newly launched government next year should include specific blueprints for digital transformation and carbon neutrality in its pledges.

According to a survey conducted by Asia Economy on the 1st among 35 domestic economic experts from academia, research institutes, and the financial sector regarding the "2022 Economic Outlook," more than 10 respondents (28.6%) answered in the subjective section that regulatory innovation is the most urgent task. They believe that if an environment where companies can invest is not created in the year the new government is launched, the growth engine may be extinguished.

They added that ▲the abolition of unnecessary regulations ▲policies to revitalize companies ▲limitation of government roles ▲relaxation of investment regulations should accompany each other.

There were also many opinions that specific measures for digital transformation and carbon neutrality should be prepared. This is interpreted as pointing out that the Moon Jae-in administration's direction was vague, and especially that the target level for carbon neutrality was excessively high.

Some also expressed the opinion that efforts should be made to create jobs. To prepare quality jobs rather than quantity, the government should support job creation in the private sector rather than fiscal jobs.

In addition, there were opinions that population policy, bubble intensification, and selective support for fiscal soundness are necessary. Multiple respondents mentioned maintaining a sustainable fiscal stance and selective support, revealing fatigue toward the "expansionary fiscal policy" emphasized by the Moon administration. The Moon administration's budget growth rates compared to the previous year were 9.5% in 2019, 9.1% in 2020, and 8.9% in 2021, and including next year, the budget will increase in the 8% range for four consecutive years since 2019. Other opinions raised structural changes such as reforming the taxation structure on assets and pension reform.

Editor's Note

Kang Moonseong, Professor, School of International Studies, Korea University; Kang Sungjin, Professor, Department of Economics, Korea University; Kwon Kwangseok, CEO, Woori Bank; Kwon Junhak, CEO, NH Nonghyup Bank; Kwon Taeshin, Vice Chairman, Federation of Korean Industries; Kim Gimum, Chairman, Korea Federation of SMEs; Kim Sangcheol, CEO, Seoul Welfare Foundation and Professor, Department of Social Welfare, Hansei University; Kim Jungtae, Chairman, Hana Financial Group; Kim Jongsook, President, Korean Association of Women Economists; Kim Jinil, Professor, Department of Economics, Korea University; Kim Heungjong, President, Korea Institute for International Economic Policy (KIEP); Park Seongho, CEO, Hana Bank; Park Cheonil, Director, International Trade and Commerce Research Institute, Korea International Trade Association; Sung Myungjae, President, Korean Association of Public Finance and Professor, Department of Economics, Hongik University; Son Byunghwan, CEO, NH Nonghyup Financial Group; Son Taeseung, Chairman, Woori Financial Group; Song Euiyoung, Professor, Department of Economics, Sogang University; Shin Gwanho, Professor, Department of Economics, Korea University; Yoo Jongil, Dean, KDI School of Public Policy and Management; Yoon Jongkyu, Chairman, KB Financial Group; Lee Geun, Vice Chairman, National Economic Advisory Council; Lee Donggeun, Vice Chairman, Korea Employers Federation; Lee Insil, Professor, Graduate School of Economics, Sogang University; Lee Inho, Professor, Department of Economics, Seoul National University; Lee Jonghwa, Professor, Department of Economics, Korea University; Lim Jin, Director, SGI, Korea Chamber of Commerce and Industry; Jang Sejin, Director, Seoul Institute for Social Economy; Jeon Gwangwoo, Chairman, World Economy Research Institute; Jeong Seeun, Professor, Department of Economics, Chungnam National University; Cho Yongbyung, Chairman, Shinhan Financial Group; Joo Hyun, President, Korea Institute for Industrial Economics and Trade; Jin Okdong, CEO, Shinhan Bank; Heo Yongseok, President, Hyundai Research Institute; Heo In, CEO, KB Kookmin Bank; Hong Jangpyo, President, Korea Development Institute (KDI)