[Insight & Opinion] Politics Driving the Public into Depression

Pessimism Overwhelms Economic Outlook in Korea
No Resolution in Sight Amid Extreme Confrontation Between President and Main Opposition Party

In a Korean Gallup survey on the 'economic outlook for the next year,' the fact that pessimism exceeding 50% has overwhelmed optimism in the 10% range for 28 consecutive months reflects, if not exaggerates, the image of a public that has lost hope and fallen into pessimism beyond just economic forecasts.

Politics is making the public even more depressed than the economy. In the same survey, President Yoon Seok-yeol, who started his presidency in the first week of May 2022 with a 52% approval rating, buoyed by conservative supporters' high expectations, saw his approval rating drop to 23% in the third week of April this year, right after the crushing defeat in the general election. It hit a low of 20% in the first week of September and recorded 23% approval and 68% disapproval in the fourth week. These results are interpreted as reflecting the public’s disappointment that President Yoon’s autocratic style of governance, ignoring the voice of the people even after the election defeat, has not changed.

Moreover, conservatives are troubled over First Lady Kim Geon-hee’s recent apology and the National Assembly’s decision on whether to hold a special investigation. If she apologizes, it may be interpreted as admitting the facts, potentially triggering a full-scale presidential impeachment campaign. On the other hand, if she does not apologize, it increases the political burden of ignoring public sentiment. Supporting President Yoon is difficult given these circumstances, but opposing him leaves a bleak outlook on what might happen next. It would be ideal to gain public support through achievements in state affairs to strengthen the legitimacy of the administration, but medical reform is sinking deeper into a quagmire with no signs of resolution, and the economic situation shows no improvement.

That said, the progressive-leaning public is not at ease either. According to the Korean Gallup survey, the People Power Party’s support stands at 31%, with 61% backing from conservatives, while the Democratic Party of Korea’s support is 32%, with 58% backing from progressives. This means that both the People Power Party and the Democratic Party of Korea receive support from only about 60% of their ideological support groups.

According to the Bank of Korea’s international investment statistics, the amount invested in overseas stock trading in the first half of this year was $29.1 billion, approximately 39 trillion won. This is a 168% increase compared to $11.3 billion, or 14.7 trillion won, in the same period last year. On the other hand, the combined stock trading volume in the KOSPI and KOSDAQ markets in the first half of this year was 128 trillion won, a 2.4% decrease compared to the same period last year. In other words, triggered by discussions on financial investment income taxation, so-called 'big players' and 'Seohak ants' (Korean investors in U.S. stocks) massively withdrew, resulting in dried-up liquidity in the stock market, falling stock prices, and a 92 trillion won reduction in the public’s wealth. This can be interpreted largely as a cost borne by the public due to the Democratic Party of Korea’s financial investment tax discussions.

Despite the urgency of national issues such as the chaotic medical reform, pension reform, and the collapse of small businesses, the political arena wastes time in a so-called 'repetitive political stalemate,' with the ruling party’s unilateral votes aimed at political attacks, the president’s vetoes, subsequent re-votes in the National Assembly, and 24 repetitions of bill rejections. The National Assembly is so engrossed in power struggles attacking or defending specific individuals that it has no time to address livelihood issues. As a result of politics being in such a state, it is natural that policy directions are distorted and momentum is lost.

How much longer and how often must the public endure this 'political depression torture'? The necessary condition to save the public, who are growing weary of political depression, is for the president to show humility by listening to the voice of the people, while the major opposition party demonstrates the capacity of a ruling party worthy of public expectations. Politics that gives hope to the people is urgently needed.

Kim Dong-won, Former Invited Professor at Korea University