Lee Jae-myung "Pursuing 3% Growth Rate Achievement"... Yoon's Direct Hit on 'Sound Fiscal Policy'

February 2, Livelihood Economy Press Conference
Taking the Lead in Budget Negotiations and General Election
Emphasizing the Dual Engine of 'Investment and Consumption' for Livelihood Recovery

Lee Jae-myung, leader of the Democratic Party of Korea, on the 2nd directly criticized the Yoon Seok-yeol administration's economic policy stance, which emphasized fiscal austerity in next year's budget citing 'fiscal soundness,' and stated, "We will pursue achieving a 3% growth rate to revive the people's livelihood economy." This is interpreted as a strategy to take the lead in the recently launched budget political landscape while highlighting the image of a 'people's livelihood party' until next year's general election, differentiating from the government and ruling party.

[Image source=Yonhap News]

On the same day, Lee held a 'People's Livelihood Economy Press Conference' at the National Assembly in the morning and said, "The people are desperately pleading, 'Please revive the economy,' but the Yoon government says, 'Fiscal soundness is important,'" and criticized, "I cannot understand how the government can be so indifferent to the pain of households and businesses, or be ignorant of basic economic logic."

This press conference was the first since Lee criticized the Yoon administration's failures in August and was about to start an indefinite hunger strike. The fact that he directly targeted the government's economic policy stance in his first official press conference after returning to party affairs is interpreted as an intention to strengthen the image of a 'competent party' through a 'people's livelihood drive.' Lee also attended the 'Democratic Economy Talk' discussion the day before, which reviewed the government's economic policy, and criticized the Yoon administration, saying, "When the (economic) situation is difficult, it is the government's role to stimulate the economy, but it is going completely the opposite way."

Lee said on the day, "In the second quarter of this year, consumption, investment, and exports all decreased, causing a 'triple crisis,'" and added, "It is the first time since the 1997 IMF crisis and the 2008 financial crisis that we have faced a triple crisis." He criticized, "There was no external shock, but it has come to this because the government, which should have sought economic stimulus measures such as increasing spending, only focused on fiscal soundness and reduced expenditures."

He expressed concern about next year, saying, "Next year is even more worrisome," and criticized, "If the government neglects people's livelihood and the economy with no measures like now, the economy will worsen further."

Lee emphasized, "If policy priorities are adjusted and all crisis overcoming measures are mobilized, recovering a 3% growth rate is definitely possible," and said, "The government must take the lead." He continued, "To achieve a 3% growth rate, a 'dual-engine' to revive the economy is needed," mentioning 'investment' and 'consumption stimulation.'

Especially regarding investment, he harshly criticized the cut in the R&D (Research and Development) budget. Lee said, "In our resource-poor country, just as 'education' brought about the current economic growth, 'R&D' is a key measure to prevent low growth and increase productivity," and strongly condemned, "Considering the sunk costs of various researches, cutting the R&D budget is not saving but wasteful and a fatal mistake."

He also demanded an increase in the regional currency budget, expansion of future-oriented SOC investment, and designation of RE100 special zones to revitalize the renewable energy industry.

Lee criticized the government for only making empty promises, saying, "State affairs are not a joke," and emphasized, "The Democratic Party will lead the resolution of people's livelihood issues and economic recovery through actions, not words. We will practice competent party politics with efficacy."