[New Year Outlook from Ruling and Opposition Economic Experts] ① Kim Sang-hoon "Urgent Need to Pass Future Food Source Legislation"

"Executing 75% of Budget in First Half to Revitalize Domestic Economy"
"Research Labs Darkened Due to 52-Hour Workweek... Absurd Situation"
"Will Actively Engage in Dialogue and Negotiation to Restore Politics"

Kim Sang-hoon, the Policy Committee Chair of the People Power Party, said in a written interview with Asia Economy on the 1st, "Political uncertainty and confusion must be resolved so that politics does not hinder economic growth." He emphasized the early execution of the budget to revitalize the domestic economy and the prompt passage of future growth legislation such as the Semiconductor Special Act, stating that the opposition party's filing of impeachment motions against cabinet members and various special investigation laws is causing political turmoil.

Kim Sang-hoon, Chairman of the Policy Committee of the People Power Party.

Chair Kim said, "Since the opening of the 22nd National Assembly, impeachment or special investigations led by the opposition have been proposed about once a week," adding, "This is an obviously abnormal political situation and a worrisome behavior that increases political uncertainty." He continued, "If political uncertainty prolongs, there is concern about downward pressure on economic growth," and added, "Considering the recent external conditions such as China's low growth and oversupply, and the strengthening of U.S. protectionism, there is also a possibility that the economic impact caused by the expansion of political uncertainty could be amplified."

He stated, "However, even if political uncertainty increases, if economic agents firmly believe that the unstable situation will be short-lived and resolved in a predictable direction, the impact on the real economy will be limited," emphasizing, "Ultimately, the abnormal overuse of impeachment and special investigations for political offensives must be stopped in the new year."

Chair Kim also said, "The passage of future growth legislation is urgent," and added, "Future growth and livelihood bills such as the Semiconductor Industry Special Act, the National Power Grid Expansion Special Act, the High-Level Radioactive Waste Disposal Act, and the Offshore Wind Power Act, which were not passed by the end of last year due to some disagreements between the ruling and opposition parties, must be handled as soon as possible."

He further requested, "In particular, regarding the relaxation of the 52-hour workweek for semiconductor R&D workers, which the industry strongly demands, we once again ask the opposition party to cooperate proactively," pointing out, "Overseas competing companies focus on research even late at night if necessary, but we are in an absurd situation where the rigid 52-hour workweek forces research institutes to turn off their lights unconditionally, and the opposition party must recognize this."

Additionally, Chair Kim forecasted, "South Korea's economic growth rate is expected to record 2.0% this year," emphasizing the activation of the domestic economy and expansion of exports through the prompt execution of the budget. He predicted that private consumption would recover as high interest rates and high inflation gradually ease, but analyzed that the recovery speed would be slow due to accumulated debt. Regarding exports, he noted that protectionism could strengthen and volatility increase with the inauguration of the Trump administration's second term.

In response, Chair Kim said, "The government plans to mobilize all available resources, including national finances, public institutions, and private investment, to focus on the first half of 2025 to help our economy regain vitality early," and added, "Out of the total 574.8 trillion won expenditure budget for 2025, 431.1 trillion won (75%) will be allocated in the first half to activate the domestic economy." He also expressed expectations that the economic growth rate in the second half of this year will exceed forecasts due to early budget execution.

Regarding "words he wants to say for Korea this year," Chair Kim said, "Both the ruling and opposition parties must seriously accept the criticism that politics is increasing uncertainty." He stated, "The People Power Party, newly launched as an emergency response committee, will focus on political stability, livelihood recovery, and economic revitalization with a sense of responsibility as the ruling party," and added, "We will actively engage in all dialogues and negotiations for political restoration."