Ando Geol: "Yoon Government, 'Triple Decrease'... Due to Policy Misjudgment"

Decline in Production, Consumption, and Investment Without Economic Crisis Factors
Economic Impact from Vicious Cycle of Fiscal Tightening and Tax Revenue Loss
"Leading Index Negative...Urgent Need for Policy Shift" Highlighted

Ando-geol, Member of the National Assembly.

Democratic Party of Korea lawmaker Ando-geol (Gwangju Dongnam-eul) pointed out on the 29th that "the cause of the Yoon Seok-yeol administration's 'triple decline' is policy misjudgment."

According to the 'October Industrial Activity Trends' announced by Statistics Korea on the same day, a 'triple decline' phenomenon occurred in which all major domestic economic indicators?production, consumption, and investment?decreased. The all-industry production index decreased by 0.3% compared to the previous month to 113.0, showing a decline for two consecutive months following September. In particular, the so-called 'triple decline' phenomenon, where industrial production, retail sales, and facility investment all decrease simultaneously, was observed for the first time since May.

By sector, construction production fell by 4.0%, marking six consecutive months of decline. This is the longest period of decline in 16 years since 2008, highlighting the severity of the construction market. Retail sales decreased by 0.4%, with durable goods sales particularly sluggish, and facility investment also dropped by 5.8%. However, some positive signs were observed in certain industries, such as semiconductor production increasing by 8.4%.

Lawmaker An released a press statement on the day, stating, "Looking at the triple decline occurrences within the first two and a half years (30 months) of past administrations, the Roh Moo-hyun administration experienced it twice, the Lee Myung-bak administration six times, the Park Geun-hye administration three times, the Moon Jae-in administration six times, and the current Yoon Seok-yeol administration recorded the highest number with six triple declines."

He added, "The Lee Myung-bak and Moon Jae-in administrations experienced triple declines under special circumstances such as the 2008 financial crisis and the 2019 COVID-19 pandemic," but criticized, "However, the Yoon Seok-yeol administration's triple decline occurred without clear global economic crisis factors and is ultimately due to policy misjudgment."

He analyzed, "The 'triple decline' in the absence of clear crisis factors is caused by misguided economic policies based on incorrect diagnoses," and "The vicious cycle between fiscal tightening that stifles growth and revenue shortfalls caused by doctrinaire tax cuts has dealt a blow to the economy."

Furthermore, the leading composite index's cyclical component, which forecasts future economic conditions, declined compared to the previous month, adding to the severity.

Lawmaker An emphasized, "The leading index turning negative means that even the key indicators predicting the future economic trend have deteriorated," and stressed, "It is urgent to shift policy direction to match the economic situation entering a downturn."