[2022 Economic Policy] Domestic Risks Next Year, Public "Asset Market Anxiety" Experts "New Polarization"

KDI Conducts 2022 Economic Policy Direction Survey
Targeting 1,000 General Public and 309 Experts

[Sejong=Asia Economy Reporter Kim Hyunjung] While the public identified 'asset market instability' as the biggest domestic risk affecting next year's economy, experts pointed to the 'new polarization' triggered by COVID-19, according to a survey. Regarding perceptions of the economic situation, experts mainly gave positive evaluations, but the public judged it to be relatively difficult, revealing a gap in perceptions.

The '2022 Economic Policy Direction' announced by the government on the 20th included the results of this survey conducted by the Korea Development Institute (KDI) targeting 1,000 general citizens and 309 experts.

According to the survey, experts evaluated this year's and next year's economic situation positively, whereas the public perceived it more negatively. The proportion of respondents who answered that this year's economic situation was 'similar to' or 'better than (will be better than)' last year was 73.1% among experts but only 33.9% among the public. For the same question regarding next year, the gap narrowed somewhat, with experts at 82.5% and the public at 68.9%.

Regarding external risks, the public most frequently cited the resurgence of COVID-19 (26.8%), while experts pointed to prolonged inflation (24.3%). For domestic risks, the top answer among the public was asset market instability (23.9%), but experts mentioned new polarization (35.9%), highlighting a difference in perception.

Evaluations of this year's government economic policies were relatively aligned. The policy deemed most in need of improvement was real estate market stabilization measures, chosen by both experts (33.8%) and the public (29.6%). Expanding job creation safety nets (experts 14.8%, public 13.9%), COVID-19 quarantine support (5.9%, 11.6%), support for small business owners and others affected (9.4%, 10.8%), and efforts to stabilize living costs (6.3%, 10.6%) were identified as the top five policies needing improvement.

Policies considered well-executed included COVID-19 quarantine support (35.0%, 30.0%), support for small business owners and others affected (10.7%, 14.4%), expansion of new growth engines (17.8%, 11.2%), eco-friendly low-carbon response (8.1%, 10.5%), and support for corporate investment and exports (5.4%, 7.4%).

Regarding priorities in next year's economic policy direction, the public mentioned the full-scale recovery of the livelihood economy (36.1%) and leap to economic normalization (24.8%), while experts cited leap to economic normalization (40.1%) and strengthening management of domestic and external risks (29.1%).

Additionally, respondents proposed key policies as part of managing domestic and external risks, including flexible response to changes in the global supply chain and smooth support for household debt and marginal companies.