[Hot Interview] 'Lee Jae-myung Sniper' Yoon Hee-sook "Need to Revive Cycle from Psychological Stability to Consumption to Domestic Demand Boost"

New Director Appointed for People Power Party Think Tank Yeouido Institute
"Must Recognize Different Mechanisms Operating in Politics and Economy"

Former lawmaker Yoon Hee-sook, known as the 'Lee Jae-myung sniper,' has returned to Yeouido. On the 6th, the People Power Party's Emergency Response Committee appointed Yoon as the new head of the party's think tank, the Yeouido Research Institute (Yeoyeon).

Yoon gained fame in August 2020 for her National Assembly speech titled "I am a tenant," opposing the Moon Jae-in administration's forced passage of the three lease laws. During her time as a lawmaker, she was known as the 'Lee Jae-myung sniper' for criticizing the effectiveness of the 'local currency' policy promoted by Lee Jae-myung, leader of the Democratic Party of Korea.

Yoon Hee-sook, Member of the People Power Party. / Photo by Yoon Dong-ju doso7@

Yoon is a former professor at the Korea Development Institute (KDI) and is regarded as an economic expert within the ruling party. She ran for the 21st general election in Seocho-gap, Seoul, and was elected but voluntarily resigned amid allegations of her father's real estate speculation. In the 22nd general election last April, she ran in Jung-Seongdong-gap, Seoul, but was defeated.

Yoon is expected to be officially appointed after approval by the Yeoyeon board of directors and the Emergency Response Committee. Below is a Q&A with Yoon Hee-sook.

You have taken on the position of head of the Yeouido Research Institute during difficult times. How do you feel?

It is a time of tremendous political turmoil. Nevertheless, Chairman Kwon Young-se of the People Power Party's Emergency Response Committee seems to have thought that, as the ruling party, we need to show the public that we are focusing on the economy and taking care of people's livelihoods. It appears he judged that someone with expertise rather than a political figure was needed.

The economy is quite difficult. What is the first issue you will look into?

The thing that makes people most anxious is a psychological aspect. Nationally, it is the volatility in the foreign exchange and financial markets. These are fluctuations caused by external shocks, which we cannot control. However, there are policy measures to monitor and intervene. Providing psychological stability to the public is key. Currently, small business owners and self-employed individuals have been facing very tough conditions since the end of the year. In a sense, they are a 'sore spot.' Politics has made this sore spot even more painful. Therefore, we will focus on this area so that people can quickly regain peace of mind and resume consumption, which will stimulate domestic demand and significantly alleviate the problem.

So you mean psychological stability is necessary?

Yes. And it is important to revive the economic cycle. Fundamentally, politics must function well for domestic demand to recover, but even if it takes some time, we must find ways to do so. It is crucial to send a message to the public that politics and the economy operate through different mechanisms, that there is no reason to be shocked by this political turmoil, that they can feel safe, and that it is okay to consume.

The Yeouido Research Institute has conducted many opinion polls.

I do not think opinion polling should be the foremost role of Yeoyeon. The most important role of Yeoyeon is to support the ruling party's policy direction, but it has come to seem as if opinion polling is the most important. Opinion polls are not necessary except in election years. Instead, opinion polls linked to policy functions are needed to understand what policy demands exist.

The Democratic Party of Korea claims that issuing local currency through supplementary budgets can revitalize the economy.

I will talk about that later. I have not even taken office yet.