[Lee·Yoon Economic Nomics Analysis] Yoon Seok-yeol's Economic Policy: 'Dynamic Innovative Growth' Rooted in 'Freedom' Economic Philosophy

Economic Growth Focuses on Private Sector Role
Emphasis on Creating New Industry Ecosystem
Virtuous Cycle of Growth and Distribution
Emphasis on Social Trust through Rule of Law

[Asia Economy Reporter Naju-seok] The core of Yoon Seok-yeol, the People Power Party's presidential candidate's economic philosophy, is 'freedom.' At the heart of market-centered growth strategies, virtuous cycles of growth and distribution, and the establishment of social trust capital based on the rule of law lies 'freedom.' Freedom implies that the private sector should take the lead rather than the government.

On the 23rd, a People Power Party election headquarters official explained, "Yoon's economic direction is job creation through the private sector, with the government providing financial and tax support for this," adding, "If growth leads to better outcomes, welfare will also be expanded and strengthened."

Although Yoon has expressed his economic thoughts through pledges and campaigns, he has never presented a concrete vision. Because of this, the term 'Y-nomics,' derived from Yoon's English initial Y, has been used, but it is not a commonly used term within the campaign. The campaign describes Yoon's economic policy framework as 'dynamic innovative growth.'

'Dynamic innovative growth' implies that the government is not the main agent of economic growth. This is because the moment the government intervenes in the economy, private innovation cannot occur. A campaign official said, "Only the private sector can enable innovation." This appears to be a lesson learned from the Moon Jae-in administration's 'government-led public job creation' policy.

Along with innovation, Yoon focuses on advancing the industrial structure by strengthening the digital economy in preparation for the Fourth Industrial Revolution. The state will provide tax, financial, and institutional support to foster a new industrial ecosystem and nurture the necessary talent. First, the government itself will become a digital platform government, fostering artificial intelligence (AI), growing the software industry, and supporting digital convergence industries by nurturing the semiconductor industry. The plan also includes training one million digital specialists. Additionally, Yoon has revealed plans to concentrate national capabilities on building new industrial ecosystems such as bio, nanotechnology, and energy technology.

Yoon prioritizes the market's role in the relationship between the state and the market. The government focuses on creating conditions for the private sector to grow, while the driving force of growth must come from the market and companies. In this process, the state's role is to act as a facilitator in creating the market environment and then focus on management functions. During a focused campaign rally in Seosan, Chungnam, on the 22nd, Yoon said, "What the government should do now is create conditions for the private sector and companies to work, ease regulations, establish the rule of law, ensure fair trade, and invest in education."

The virtuous cycle of growth and welfare is also central to Yoon's economic philosophy. He proposed "opening an era of a happy economy," aiming to create good jobs while building robust welfare. A campaign official introduced, "As the pie grows through growth, what can be shared also increases," adding, "The focus is on welfare that enables people to work, not just giving out benefits." He explained, "To promote working welfare, incentives such as expanding the Earned Income Tax Credit (EITC) are encouraged for those who can work, and when they work, a virtuous cycle of growth becomes possible."

The state's role focuses on supporting socially vulnerable groups. Regarding this, Yoon emphasized, "Only when everyone receives a certain level of economic ability and educational opportunities can they become free individuals," and stressed, "All citizens must become free individuals, which is a responsibility shared by all members of our community."

Regarding economic growth and the state's role, Yoon emphasizes the importance of the 'rule of law.' Having stressed fairness and common sense, Yoon believes that the rule of law can serve as trust capital that enhances the minimum stability of economic activities, so the rule of law must be the fundamental foundation.