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'Debt concern in the face of crisis meaningless'

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By Lee Kyung-min
  • Published May 7, 2020 5:15 pm KST
  • Updated May 7, 2020 6:15 pm KST

Jang Jei-woo

By Lee Kyung-min

Independent statistical analyst and author Jang Jei-woo said the economic relief package to help those hit by the COVID-19 pandemic should prioritize the urgent needs of the people over concerns about government debt, Thursday.

The debt incurred by the government is a major concern in the long term, but not as imminent a problem as the severe financial difficulties that many citizens are facing following layoffs or forced unpaid leave, especially in a country where a weak social safety net has pushed up the number of suicides. Details are more clearly outlined in his new book titled “Tax Education.”

“Korea is known for having one of the world's highest suicide rates and it has been closely related to financial difficulties in times of crisis,” said Jang.

Following the Asian financial crisis in 1997, Korea's suicide rate was the second highest among the Organization for Economic Cooperation and Development (OECD), with the rate increasing by 5.3 for every 100,000 from 13.1 in 1997 and 18.4 in 1998.

Of OECD countries, Korea saw the fourth highest year-on-year increase in suicides between 2002 and 2003 and fifth between 2008 and 2009 with the rate increase being 4.7 for every 100,000 (from 17.9 to 22.6) and 5.0 for every 100,000 (from 26 to 31), respectively.

“The last two periods were marked by mass credit card defaults and global financial crisis, preceded by rapid year-on-year job losses for months. This is why I think more prompt government help should be underway following the woeful jobs data in March,” he said.

Statistics Korea data showed 195,000 people lost jobs in March from the same month a year earlier, the sharpest decrease since May 2009 amid fallout of the global financial crisis.

“A man whose travel business tanked committed suicide April 17, which could be the beginning of many more unless the government comes up with more direct and effective relief measures. People should come first, not some distant problem about incurring debt,” he said.