"Confirmed 'No Effect' During the COVID-19 Crisis"
"Only Future Generations Will Bear a Greater Burden"
Lee Junseok, a member of the Reform New Party, is attending the 21st Presidential Inauguration Ceremony held at the National Assembly in Yeouido, Seoul on the 4th. Photo by Kim Hyunmin
Lee Junseok, a member of the People Power Party, criticized President Lee Jaemyung's national relief payment policy, arguing that it would be ineffective and would only increase the debt burden on future generations. He interpreted the disaster relief payments distributed during the COVID-19 pandemic as having given the appearance of a short-term revival in consumption, but ultimately resulting in only one-off spending and leading to stagflation (economic stagnation combined with rising prices).
On the 23rd, Lee Junseok stated on his Facebook page, "President Lee Jaemyung's so-called 'voucher economy' and 'coupon economy' are ultimately methods in which the government takes on debt to provide excessive cash-like support in order to induce short-term consumption."
He continued, "National finances should not be used as a means for short-term effects. If there was a guarantee that the population responsible for repaying today's 100 won in debt would double in 30 years, it could be considered a reasonably rational investment. However, the reality in Korea is the opposite," adding, "In 30 years, the population that must repay the debt will be cut in half as we head into a period of demographic contraction. The same 100 won will mean that the per capita burden on future generations will more than double."
He also expressed concern about the Lee Jaemyung administration's plan to establish a 'bad bank' on the premise of writing off the bad debts of 1.13 million people. Lee Junseok said, "This approach will inevitably foster moral hazard throughout society and fundamentally undermine the foundations of price stability and the credit system. No matter how well-intentioned it may appear, it is impossible to operate a sustainable economy by undermining trust in the financial system."
He also commented on the recent rise in the KOSPI, noting that the current upward trend is based on expectations, but a market that floats without fundamental strength is bound to become a roller coaster. Furthermore, he predicted that if President Lee Jaemyung fails to control inflation and maintain the credit system, the Korean economy will inevitably be shaken.
In conclusion, Lee Junseok emphasized, "We must appoint a Deputy Prime Minister for Economic Affairs who can quickly restore trust in the market. There is no room to delay this critical decision under the pretext of procedural formalities, such as waiting for the Prime Minister's recommendation. The national economy is not an experiment. What we need now is not the speed at which money is distributed, but the speed at which trust is built."
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