Resolving the growing divide between Korea's haves and have-nots is key to fulfilling Rep. Park Geun-hye's presidential campaign pledge to seek national unity, the head of the ruling party's special committee on people's happiness said Wednesday.
In a meeting with reporters two days after his appointment to the post, Kim Chong-in, who is widely considered the architect of the economic democratization concept, stressed polls show more than 80 percent of the public think South Korean society is divided between the super privileged or 1 percent of the population, and the ordinary people who make up the remainder.
"The economic and social friction that has grown is very serious," the Saenuri official said, adding that while no immediate policy initiatives can resolve such polarization, there is a pressing need to prevent it from worsening.
Kim, a reformist economist who served four terms as a lawmaker, said that despite some detractors, no one currently disputes the need for economic democratization.
"Economic democratization seeks to harness the free market to ensure efficient and stable growth," he explained.
The official, regarded as the economic mentor to Park, said history has shown the greed of big businesses has no limits and this tendency was revealed in the Asian financial crisis of 1997-98 and more recent developments.
"Since big businesses will never change voluntarily, there is a need to prod them to conform to the present environment," he said, making clear the need for stricter governmental oversight and control.
The special committee chairman, in addition, said polarization extended to the labor market and cited so-called aristocratic unionists for contributing to the problems surrounding irregular workers.
"Regular workers who are members of strong unions ignore the fact that by demanding and receiving considerable benefits, they are making things worse for non-regular workers," he said. Kim said that if such conditions persist there could be an "explosion" of discontent.
The former chief political advisor to President Roh Tae-woo said politicians must show firm resolve in tackling these problems and try to create a new labor market.
He said, however, resorting to state subsidies to make irregular workers into regular employees is unrealistic as there is a limit to how much the government can set aside for such a move.
On the need to raise taxes to meet greater demand for welfare outlays, he said efforts must first be made to ensure state revenues are used to the fullest. He conceded that collecting more money is an option that could be considered in the future.
"Raising taxes can be considered after the presidential race is over and a clearer picture can be made on spending requirements," he said.
Kim also said with predictions of the economy growing just 2.5 percent this year, there is a need for the next president to come up with a policy to cope with future challenges.
The government downgraded this year's growth prediction from 3.7 percent to 3.3 percent in late June and there have been growing concerns the slowdown in the global economy caused by eurozone woes and problems facing the United States and China will further hurt Korea. (Yonhap)