Opposition: "Yoon Economic Team's Situation Assessment Is Naive... All Members Must Be Dismissed to Restore Market Trust"

Kim Tae-nyeon: "Fiscal Spending Should Be Seen as Investment for Growth, Not as a Cost"
Democratic Party Livelihood and Economic Crisis Countermeasures Committee Press Briefing

[Asia Economy reporters Naju-seok and Park Joon-yi] The Democratic Party's Livelihood Economic Crisis Countermeasures Committee demanded the complete dismissal of the Yoon Seok-yeol administration's economic team on the 5th.

Kim Tae-nyeon, chairman of the Democratic Party's Livelihood Economic Crisis Countermeasures Committee, stated at a press briefing at the National Assembly that "it is urgent to replace the key decision-makers of the government's economic policy," and argued, "This is not a showy reshuffle, but a reshuffle necessary to restore market confidence."

Chairman Kim said, "(The current economic team) is excessively insensitive to changes in the times and has a complacent judgment of the situation," and added, "I propose the complete dismissal of the current government's economic team, which is repeating economic policies reminiscent of the MB era, and at least in economic policy, to appoint officials regardless of faction to respond to the crisis."

Regarding fiscal policy, he said, "National finances should tighten during economic booms and expand during recessions to reduce economic fluctuations," and urged, "The government should not rigidly adhere to textbook principles such as 'reducing fiscal spending to tighten and achieving balanced budgets,' thereby limiting policy tools." He continued, "Fiscal spending should be recognized not as a cost but as an investment to support the growth rate of Gross Domestic Product (GDP), and fiscal policy should shift to a flexible and accommodative stance that selectively supports vulnerable companies and households."

Kim Tae-nyeon, Chairman of the Democratic Party's Committee on Livelihood and Economic Crisis Measures, is attending the 'National Assembly Members Economic Seminar - The Economy is the Democratic Party!' seminar held at the National Assembly on the 9th, delivering a greeting./Photo by Yoon Dong-joo doso7@

On inter-Korean relations, he also proposed, "We should promptly open the door to inter-Korean dialogue," warning, "While unstable inter-Korean relations may be advantageous for consolidating the ruling party's support base, they are the greatest risk factor to our economy."

The Livelihood Economic Crisis Countermeasures Committee assessed this year's economy by stating, "All the concerns that were anticipated have materialized within eight months of the Yoon Seok-yeol administration's launch," and diagnosed, "The market situation makes it difficult to assign any positive meaning to any economic indicator."

After mentioning risks such as trade balance and stock market, Chairman Kim said, "Real estate is an even bigger problem," criticizing, "As long as the current high-interest rate stance is maintained, a long-term slump in the real estate market seems inevitable, but the government is trying to stabilize real estate prices by stimulating speculative demand amid a bubble collapse."