By Jane Han
Staff Reporter
``CEO President'' Lee Myung-bak has championed competition so much that his name now seems almost synonymous with the word. But in the tale of rivalry where losers are left behind, what happens to compassion?
The new government's story goes that a pro-growth and pro-market policy will improve the economy and create more jobs, consequently leading to better livelihoods.
``Heavy emphasis is placed on hopes for a trickle-down effect,'' said Kim Sun-bin, a research fellow at the Samsung Economic Research Institute (SERI), adding that Lee's less than 10-day-old administration has yet to detail out policies for a ``warmhearted or compassionate economy.''
Currently, the closest approach is the 66-year-old's ``active welfare'' agenda, listed among his top five tasks in state affairs.
It mainly highlights retirement, health benefits and other welfare programs, along with education support for children from low-income families.
But critics are already raising concern that even his welfare policies are built on the basis of competition.
``His plans are made to only embrace the lowest bracket households and there are so many cracks that will inevitably worsen economic polarization,'' said the People's Solidarity for Participatory Democracy, a vocal domestic civic group.
They added that the plans include ways to boost mom and pop stores and relieve credit defaulters' debts, but doubt whether these promises will come through.
``People are coming to realize that Lee's fundamental ideology doesn't quite embrace society's needy,'' said the group.
But Kim says the new government is still ``very young and it needs guidance to map out a more realistic approach.''
``The core target of future policy to better the lives of low income-earners will be small manufacturers and the self-employed for subsistence,'' he said, explaining that 61 percent of low-income workers are hired by these small businesses.
Generally, the low-income class refers to the lowest 20 percent income group, which Kim says the government should focus on reviving.
A SERI report said the country's over-regulation on new businesses discourages job creation, pointing out that Korea ranks 10th among OECD member nations in terms of regulations for starting businesses.
Instead of bogging down starters, it said the government should set up programs, such as financial support, for local small- and mid-sized businesses to stand independently.
``Allowing self-sufficiency of weaker enterprises is the key. The economy will grow healthily if it stands firm from the bottom-up,'' said Kim, adding that the trickle-down effect works, but not always.
The global economy is faced with so many uncertainties, he said, stressing that Korea is not immune from any of these concerns.
``So in this case, we have to do what we can from the inside out, instead of waiting for conditions to improve on a bigger scale,'' said the researcher.