[반환점 돈 윤석열 정부] Prices, jobs, real estate ‘screaming’… Urgent need for economic reform

President Yoon Seok-yeol is answering questions from reporters during a public address and press conference held at the Presidential Office Building in Yongsan, Seoul on the 7th. Provided by the President’s Office

Mr. A, an office worker, went out of his way to buy a house a few years ago. Looking at the recent rise in house prices, I feel fortunate, but loan interest is a problem. I invested in semiconductor stocks with high expectations, but the stock market is in the blue. Even in the news, there are only dark stories. It is said that the number of people in their 20s who have given up on employment has increased, and there are concerns about a medical gap due to the departure of majors. These days, I wonder if I should get sick or not.

President Yoon Seok-yeol reached the halfway point of his term on the 10th. May 2022, when President Yoon was in power, was a time when the end of the long COVID-19 quarantine was in sight. However, despite expectations, the recent economic situation has actually retreated. Consumption has frozen due to a slump in domestic demand, and there are no signs of a rebound in economic growth. The fact that the consumer price inflation rate in September fell to the 1% level for the first time in 3 years and 7 months, and continued to stabilize at 1.3% last month, is a cause for optimism. However, it is expected to take some time to return to normal.

President Yoon has promoted the ‘four major reforms’ of pensions, healthcare, education, and labor as key national tasks, but has not achieved any clear results. For example, it is unclear whether the pension reform plan announced in September will be passed within the year, and legislative conflict has continued for 10 months due to the plan to increase the number of medical school students by 2,000. In terms of economic policy, it advocates private-led growth, but there are evaluations that support for the manufacturing industry, which has supported the Korean economy, is insufficient.

As the people’s economy shrinks, the business environment of major companies is also experiencing deterioration. In celebration of its 19th anniversary, World Business & Sports World conducted the ‘Return Point Money Yoon Seok-yeol Government Industry Survey’ targeting 100 businessmen from the 30th to the 5th of last month, and the result was a poor average score of 34.75 points out of 100. In the three items of job creation, price stability, and resolving income inequality, not a single respondent gave 100 points.

This magazine gives 5 choices in 20-point increments from 20 to 100 points for eight items, including ▲corporate revitalization ▲job creation ▲tax equity ▲price stability ▲resolving income inequality ▲real estate stability ▲pension and medical/welfare ▲trade policy. It was presented to businessmen for evaluation.

As a result of the survey, all eight items had an average score of only 30 points. When asked to rate the Yoon administration’s business revitalization policy, the score was the highest, but the average was only 38 points, making comparison meaningless. The item with the lowest score was price stability with 32 points. In particular, it is important to note that this survey was conducted only on businesspeople. This is because even though the government is promoting ‘business-friendliness’ as its main economic and industrial policy, such as tax cuts and regulatory reform that can be helpful to our economy and businesses, business leaders have given a poor evaluation.

The results of our survey are consistent with the current government approval rating. Gallup Korea announced on the 8th that President Yoon’s approval rating for state affairs was 17%, breaking the lowest since the administration was launched. Based on the midpoint of his term (the second quarter of his third year in office), former President Roh Moo-hyun had 34%, former President Lee Myung-bak 49%, former President Park Geun-hye 36%, and former President Moon Jae-in 45%, all higher than President Yoon.

The results of this survey clearly revealed the task of the government to listen more closely to the voices of our economy and businesses, make a bold change in direction, and consider and implement practical support measures. Kim Sang-bong, professor of economics at Hansung University, said, “With the growth rate stagnating at less than 2%, prices continue to rise, increasing corporate expenses, slowing sales growth, and even reducing employment.” “We need to continue to create an atmosphere where we can make profits and create jobs,” he said. He then pointed out, “The current Yoon administration does not see any policies related to it, either macro or micro.”

Reporter Lee Hwa-yeon [email protected]

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