Ando Geol Criticizes Yoon Seok-yeol Government's 'Three No's' Economic Policy

‘No Vision, No Reform, No Responsibility’ Laissez-Faire Criticism
Growth, Inflation, Tax Revenue, and Finance All at Lowest Levels
“Need to Shift to ‘3P’ People-Centered Economic Policy”

Ando-geol Assemblyman

Democratic Party of Korea lawmaker Ando-geol (Gwangju Dongnam-eul) criticized on the 10th at the first National Assembly audit held by the National Assembly’s Budget and Accounts Committee that the Yoon Seok-yeol administration’s laissez-faire ‘three no’s’ economic policy has resulted in the worst economic performance among all past governments.

Lawmaker An pointed out, “The current economic hardships stem from the Yoon Seok-yeol administration’s laissez-faire economic policy stance characterized by no vision, no reform, and no responsibility?the ‘three no’s.’”

He cited the lack of a national vision to overcome contemporary challenges such as low birthrate and aging population, polarization, energy transition, and technological hegemony in the Fourth Industrial Revolution. He further criticized that among urgent reform tasks including reform in labor, education, healthcare, and pensions to improve the structure of our economy, there have been no achievements, and due to the absence of strategy and communication, efforts have stalled, only generating public conflict and inconvenience. He also condemned the administration for blaming previous governments for consecutive policy failures such as unprecedented low growth, tax revenue shortfalls, and fiscal collapse, with no one taking responsibility or reflecting on these issues.

Lawmaker An compared and analyzed the economic performance during the first two years of five administrations starting from the Roh Moo-hyun government. The Yoon Seok-yeol administration recorded an average growth rate of 1.9% over two years, tying for last place with the MB administration. The inflation rate soared to an average of 4%, three times higher than that of the Park Geun-hye and Moon Jae-in administrations, and the fiscal health, which was supposed to be sound, showed a record level of collapse.

In particular, a massive tax revenue shortfall of 86 trillion won occurred over two years, reaching a disastrous level incomparable to previous governments. The managed fiscal balance recorded a deficit of 170 trillion won over two years, tripling the level of previous administrations. Due to the tax revenue shortfall and fiscal deficit, national debt increased by 128 trillion won, which is twice the increase seen in the first two years of any past government’s term.

The foreign exchange reserves, which serve as a safety net for the national economy’s external payment capacity, decreased by 34.9 billion USD during the two years of the Yoon Seok-yeol administration. This is the first government since the IMF foreign exchange crisis to see a decline in foreign exchange reserves. The amount of foreign exchange reserves depleted due to intervention in the foreign exchange market to defend the high exchange rate reached 39.4 billion USD. The government has been using Korean won funds generated from dollar sales in the Foreign Exchange Stabilization Fund to make early repayments totaling 40 trillion won to the Public Fund?20 trillion won last year and 20 trillion won this year?covering the unprecedented tax revenue shortfall and fiscal collapse in the general account.

Lawmaker An stated, “The current administration has recorded an overwhelmingly last-place performance incomparable to previous governments,” and criticized, “How can they claim that the economy has definitely revived and national finances have strengthened when presenting such poor results?” He then proposed the ‘three essentials’ economic policy measures: ▲discovering and fostering future innovative industries, boosting domestic demand and active fiscal investment to achieve balanced growth among regions, classes, industries, and economic sectors ▲pursuing reforms through a nationwide consultative body ▲prioritizing people’s livelihoods and transitioning to open policies through policy and personnel renewal.

Lawmaker An emphasized, “During the two and a half years of the Yoon Seok-yeol administration, our economy has fallen into the quagmire of low growth and polarization,” and stressed, “A transition from the ‘three no’s’ laissez-faire economic policy to the ‘three essentials’ people-centered economic policy is necessary.”