Presidential aspirants are trying hard to woo voters by proposing a set of policy options to revive the economy, stabilize housing prices and create more jobs. Yet most people are wondering if their campaign pledges can be put into action, whoever wins next year's election. The answer is anything but positive.
Rep. Lee Nak-yon of the ruling Democratic Party of Korea (DPK) has promised to increase the proportion of the country's middle class to 70 percent from the current 57 percent. This promise came Monday after he declared his bid to run for the presidency. It is important to expand the middle class, which is often called the backbone of democracy, and so no one should object to this pledge.
But it seems almost impossible to keep such a promise, given that the middle class has continued to decline from 71.7 percent in 2000 to 67.5 percent in 2010. Former President Park Geun-hye once made a similar pledge, which she failed to keep. So therefore, Lee should present a concrete plan to replenish the middle class; otherwise, the public cannot trust his words.
On Tuesday, Lee, a former prime minister and ex-DPK chairman, said that he will draft three bills designed to introduce the concept of “public ownership of land” to stamp out real estate speculation. The key points of the bills are to put a limit on housing land ownership and allow the government to collect the development profits from private landlords.
But this concept appears to be unfeasible. Similar legislation was put forward under the rule of former President Roh Tae-woo. But they were declared unconstitutional in the 1990s because they infringed on the people's right to private ownership. It is urgent to fight property speculation and bring runaway housing prices under control. Yet it is irrational to restrict private ownership as an anti-speculative measure.
Gyeonggi Province Governor Lee Jae-myung, a leading DPK presidential hopeful, has floated the idea of creating a public corporation that will purchase homes and lease them to the public. His idea, if implemented, could bring about the effect of stabilizing housing prices. But it goes against market principles by empowering the government and local authorities to control housing prices directly.
Also disappointing is that the governor has stressed the need for much heavier taxes on homeowners, especially those with multiple homes, to prevent them from making profits from speculation. Everyone knows that imposing higher taxes alone cannot prevent speculation. Supplying more homes at affordable prices is crucial to cooling the overheated housing market.
We urge the presidential contenders, both from the ruling and opposition blocs, to come up with campaign promises that are feasible and market-friendly. They should not try to deceive voters with sugar-coated words or populist ideas. Voters, for their part, need to deliver a stern judgment on any reckless and irresponsible candidates who only make empty promises.