Economic Issues Pile Up from High Exchange Rates and Inflation to IRA and Currency Swap Solutions
Controversy Over President Yoon's Remarks Ahead of Regular National Assembly Session...Strong Opposition from the Opposition Party
[Asia Economy Reporter Ki-min Lee] President Yoon Seok-yeol returned home on the night of the 24th after completing his visits to the United Kingdom, the United States, and Canada, but domestic political issues such as the National Assembly audit, cooperation with opposition parties, price and exchange rate stabilization, and cabinet appointments remain pressing.
According to the Presidential Office, President Yoon stayed at his residence in Seocho-dong, Seoul, without any special schedule on the 25th and reportedly received briefings on domestic issues from his aides.
The most urgent issue currently is the economy. The exchange rate has exceeded 1,400 won per US dollar, and prices are soaring, showing signs of stagnation. At the high-level ruling party-government meeting held that day, Jeong Jin-seok, Emergency Committee Chairman of the People Power Party, Prime Minister Han Duck-soo, and Presidential Chief of Staff Kim Dae-gi all spoke in unison about the current economic situation and the crisis facing the livelihood of the people.
Moreover, concerns about discrimination in subsidies for Korean electric vehicles under the US Inflation Reduction Act (IRA) and the need for progress in the Korea-US currency swap are pressing issues.
The Presidential Office stated that during the three meetings between President Yoon and US President Joe Biden, held during this visit, they confirmed their willingness to cooperate at the summit level on the IRA, financial stabilization cooperation (including liquidity facilities), and extended deterrence against North Korea.
However, the opposition parties criticize President Yoon's visit schedule, saying there were no concrete outcomes. Therefore, attention is focused on whether discussions will take place during the meeting with US Vice President Kamala Harris, who is scheduled to visit Korea on the 29th.
It is also expected that efforts to open dialogue and restore relations with the major opposition party during the first regular session of the National Assembly will face difficulties.
There were expectations that President Yoon would meet with the leadership of both ruling and opposition parties immediately after his visit to share the diplomatic achievements and seek cooperation in state affairs, but the opposition continued their offensive citing controversies over the office relocation and the visit itself.
Furthermore, the political sphere has been overshadowed by the "profanity controversy" that arose immediately after President Yoon met President Biden at the 7th Replenishment Conference of the Global Fund held in New York on the 21st (local time).
The Presidential Office explained that the target of the profanity was not the US Congress but our National Assembly (opposition party), but this only worsened relations with the opposition.
As a result, it is anticipated that it will be difficult to secure cooperation from the opposition, which holds the key to next year's budget review and the passage of major bills.
Lee Jae-myung, leader of the Democratic Party of Korea, warned through Facebook and other channels the night before, saying, "Turning a blind eye to injustice is injustice," and "If it is for righteousness, one must act accordingly," signaling an escalation in offensive rhetoric.
Meanwhile, the completion of the first cabinet, which remains unfinished five months after President Yoon's inauguration, is also considered a major issue. The position of Deputy Prime Minister and Minister of Education has been vacant since the resignation of former Deputy Prime Minister Park Soon-ae.
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