Kang Seung-woo is the Business Desk editor at The Korea Times. Prior to this position, he covered politics, national affairs, finance and sports.
Flip-flopping on policy
By Kang Seung-woo
A series of flip-flops on policy by the Yoon Suk Yeol administration is confusing the public.
Given that the whole nation is subject to government policies, they should be predictable and sustainable, to help boost the efficiency of policy implementation and earn credibility both internally and externally.
However, the recent sweeping changes to the administration's policies, believed to have been made as part of efforts by the government and the ruling side to curry favor with voters ahead of next year’s general elections, are prompting many to say that these political considerations have gone too far.
The latest example of the policy oscillation is the unexpected decision not to ban the use of disposable cups at restaurants and cafes earlier this month. In addition, regulations on the use of plastic straws at cafes and restaurants and plastic bags at convenience stores are set not to be enforced for the time being.
The Ministry of Environment implemented regulations on using disposable items, Nov. 24 of last year, setting a grace period of one year. A violation would have resulted in a fine of up to 3 million won ($2,325) after the end of the grace period.
But two weeks ahead of the enforcement, the ministry abruptly withdrew from the directives by extending the guidance period indefinitely, causing bewilderment among local governments and companies that had prepared for the plan.
As a result, some paper straw makers are considering closing down their businesses following the government’s announcement. Paper straws emerged as an alternative to plastic straws.
The root cause of the de facto policy withdrawal is based on complaints from small business owners and consumers who were not happy about paper straws because they cost more and are difficult to use.
Despite struggling with mounting losses of more than 200 trillion won, the state-run Korea Electric Power Corp. (KEPCO), the dominant electricity supplier in the nation, has decided to freeze electricity prices for households and self-employed individuals amid concerns regarding the high rate of inflation in the country.
Instead, it has raised industrial electricity prices, along with a plan to sell some of its assets, believed to be a decision pushed by political considerations before the elections, scheduled for April 10, 2024, because there are doubts that the plan to unload its debts is still seen as a non-starter.
Not only is it not a fundamental solution to KEPCO’s losses, but it also does not correspond to the goal of electricity conservation. Instead of passing the burden on to future generations, the government should first review the reorganizing of the permanent fee system.
The government’s unexpected ban on short selling is also taking flak in that the decision is allegedly aimed at courting young voters who have repeatedly taken issue with the practice.
However, short selling is widely practiced by foreign investors, so the ban prompted concerns that Korea’s stock market will be regarded as less open and transparent for international investment. In addition, it is also feared to prevent the nation from gaining developed market status from global index provider Morgan Stanley Capital International (MSCI).
The government is advised to keep in mind that if the policy is changed suddenly, it cannot be free from criticism that it is a “vote-catching policy” in the lead-up to the general elections and the trust of the people, who follow the policy, will be lost.
The writer is the politics desk editor.