Hong Jang-pyo: "If the Prime Minister Turns a Deaf Ear, No Reason for KDI Director to Stay"

Hong Jang-pyo, Chair of the Special Committee on Income-Led Growth, is speaking at the joint forum of the Special Committee on Income-Led Growth and the Korea Institute for Health and Social Affairs held on the 22nd at the Seoul Global Center International Conference Hall, on the topic of the achievements and challenges of income-led growth as seen through household income and consumption capacity. Photo by Moon Ho-nam munonam@

[Asia Economy Sejong=Reporter Kim Hyewon] Hong Jangpyo, President of the Korea Development Institute (KDI), has for the first time expressed his position regarding his tenure, stating, "If the Prime Minister closes his ears to my differing opinions, there is no reason for me to remain as the KDI President."

On the 6th, President Hong released a statement saying, "I was greatly disappointed that the Prime Minister said differences between the government and national policy research institutes cannot be acknowledged and spoke about my tenure in that manner."

Earlier, on the 29th of last month, during a meeting with the press to mark his one-month anniversary in office, Prime Minister Han Duck-soo responded to a question about President Hong’s tenure by stating, "It is unacceptable for the architect of the income-led growth policy from the Moon Jae-in administration to be sitting as the KDI President."

President Hong conveyed his feelings, saying, "During the process of implementing the income-led growth policy, considerable supplementation and revision were necessary, and at that time, the Prime Minister gave valuable advice along with some harsh criticism. Although the Prime Minister provided valuable advice during the previous Moon Jae-in government, I thought it was now my turn, as KDI President, to offer advice."

He continued, "Last week, the Prime Minister said, contrary to the legal intent to respect research neutrality, 'We cannot go together; it must change,' which I believe was an inappropriate remark that undermines research neutrality and the purpose of the law. If the Prime Minister thinks that KDI and national policy research institutes should focus only on research that suits the regime’s tastes and become the regime’s mouthpiece, then it is only proper to seek public consent and amend the law," criticizing the Prime Minister.

He added, "In April, former Deputy Prime Minister Jin Nyeon, who gave the keynote speech at the National Future Strategy Conference hosted by KDI, reminded us that 'KDI should not be a research institute for a particular regime but a research institute that opens the future for the people.' On the other hand, I have never met anyone who said that national policy research institutes should align with the regime’s will," directly targeting Prime Minister Han Duck-soo.

Regarding the policy direction of the Yoon Suk-yeol administration, he mentioned, "They are advocating private sector-led growth, which is profit-led growth centered on tax cuts and deregulation," and pointed out, "This is no different from the 'business-friendly' approach promoted at the beginning of the Lee Myung-bak administration 10 years ago." He also stated, "I believe the Yoon Suk-yeol administration’s private sector-led growth is insufficient to overcome the current complex crisis and prepare for an era of great transformation, requiring revision and supplementation," adding, "Last year, U.S. President Biden also declared in his congressional address that 'trickle-down economics through tax cuts has never worked.'"

He emphasized, "Policies find the right direction through active discussions and intense debates among people with differing opinions," and "One of the roles of national policy research institutes is to lead in-depth research and vigorous debate on the direction our society should take."

Furthermore, he said, "Research reports from KDI and national policy research institutes should not change simply because the administration or the president changes," and urged, "Even if I leave, I believe the KDI researchers will continue their research steadfastly, guided by their convictions and with the people in mind."

In conclusion, President Hong stated, "The autonomy of research institutes must be respected," and added, "I only hope that the Prime Minister acknowledges differences, listens broadly to the diverse opinions of researchers, and leads us through the complex crisis and the era of great transformation."