[Viewpoint]One Week Left Until the Presidential Election: What We Must Do

In one week, a new president will be elected in South Korea. When looking at the economic pledges of the leading candidates, Lee Jaemyung of the Democratic Party of Korea and Kim Moonsu of the People Power Party, they can be summarized as focusing on economic stimulus in the short term and expanding investments in new industries such as artificial intelligence (AI) in the mid- to long-term. To stimulate the economy, they are proposing measures such as an additional supplementary budget, tax cuts, and deregulation.

If a supplementary budget of 40 trillion to 50 trillion won is drawn up in the second half of the year to boost the economy, it could immediately revive domestic demand. The government should be willing to spend money, even by taking on debt if necessary. Tax cuts can also be considered if they can increase investment and real income for struggling businesses, small merchants, and ordinary citizens. It is also urgent to eliminate unreasonable regulations that hinder investment and increase costs.

However, this is essentially the extent of the candidates’ pledges. They are avoiding providing specific solutions for how to address the challenges facing the Korean economy. While the destination is clear, the path to get there remains vague.

The fundamental challenges facing the Korean economy cannot be solved by short-term government measures. Due to low birth rates and an aging population, economic vitality is rapidly declining. Korean companies are losing their competitiveness in the global market. There are even forecasts that achieving a 1% economic growth rate this year will be difficult. Even without listing every structural challenge and the weakening of corporate competitiveness in Korea, we are well aware of the situation. These longstanding issues cannot be resolved simply by slightly boosting the growth rate through government stimulus.

This is why the new president is so important. The most crucial mission for the new president will be the economy. The key is to restore the competitiveness of Korean products. Only then will factories operate and good jobs be created. The government must actively support companies in securing technological capabilities. There is no reason to hesitate in implementing regulatory reforms that companies demand. For companies lacking competitiveness, bold restructuring must be possible, and an environment should be created for them to enter new industries. Countermeasures must also be prepared to respond to the America First policies of the Donald Trump administration in the United States.

Korean society also faces urgent structural reform tasks that can no longer be postponed, such as education reform, labor reform, pension reform, and political reform. Presidential candidates need to present a roadmap for education reform that addresses how to reduce private education expenses and how to nurture talent at universities. They must also clearly state their positions on solutions to youth unemployment and the debate over extending the retirement age. Pledges regarding pension reform and political reform, including constitutional amendments, need to be more concrete.

Even if the presidential candidates have ideas about these issues, it is difficult to bring up terms like structural reform or restructuring in an election where every vote counts. This is because someone will inevitably be disadvantaged by such reforms. However, it would be a mistake to think that voters will simply be swayed by the candidates’ rosy promises. Today’s more discerning voters can fully anticipate how the necessary financial resources for the pledges will be secured, whether the policies are merely a shell game, and whether there will be any side effects.

This presidential election is crucial enough to determine whether South Korea can remain among the ranks of advanced nations or fall behind. The younger generation must choose a leader who can design the future of Korea, while the middle-aged and older generations must select a leader who can pass down the world’s best democracy and economy to future generations. The remaining week is the final opportunity to scrutinize the candidates for this choice.