DPK leader expresses strong support for Moon's economic policy

Ruling Democratic Party of Korea (DKP) leader Lee Hae-chan delivers a speech as the leader of a negotiating bloc at the National Assembly, Tuesday. During his speech, Lee highlighted his role to support the Moon Jae-in administration's income-led growth policy amid criticism over the policy's direction. / Yonhap

By Park Ji-won

Ruling Democratic Party of Korea (DPK) chief Rep. Lee Hae-chan vowed to support the Moon Jae-in administration's income-led growth policy in a National Assembly speech, Tuesday.

Lee said he wants to share economic visions with President Moon.

“I guarantee the Moon Jae-in administration's comprehensive growth model comprised of income-led growth, innovative growth and a fair economy will lead to make a new paradigm in the South Korean economy opening the era of $40,000 in gross national income (GNI),” Lee said.

“In order to achieve continuous economic growth, we need to create innovative welfare and labor growth models that fit our reality. Beyond economic prosperity, the country should become a nation where people want to live.”

His remarks came amid criticism about the Moon government's key economic policy to spur the sluggish economy by increasing people's incomes. Opposition parties have condemned the policy saying “it is not helping to boost the job market or growth.”

Emphasizing the ruling party will do its utmost to persuade and establish a social consensus, Lee urged the Assembly to pass the Panmunjeom Declaration to carry out denuclearization on the Korean Peninsula and economic cooperation between the two Koreas.

Citing the Wassenaar Agreement made between employers and labor unions in the Netherlands, Lee also pledged to run a joint meeting participated in by ordinary people, party members and experts to come up with economic policies, as well as forming an umbrella special committee for the self-employed and small business people.

He also pledged to decentralize the government offices from Seoul to local provinces by legislating related laws.

Meanwhile, the main opposition parties criticized Lee's speech especially about the economic policies.

The Liberty Korea Party (LKP) criticized the government's economic policy right after Lee's speech saying it was endangering the nation's economy.

“Today's speech by DPK leader Lee Hae-chan was a unilateral push for resolving the nation's tasks by Cheong Wa Dae and the DPK that is separated from ordinary lives and hopes,” said floor spokeswoman Shin Bo-ra in a comment.

“The bad side effects of the income-driven growth policy, made by massive taxes, started to emerge,” senior spokesman Yoon Young-seok said.

“Because of the wrong policy of the government, the economy is falling into an abyss. The economic indexes of investment, employment, distribution and consumer sentiment are getting worse.”

The minor opposition Bareunmirae Party also condemned Lee's remarks saying that “people are walking in the streets without jobs and small firms and self-employed workers are closing their operations.”

“The aim of reaching $40,000 in GNI is giving false hopes to people,” floor spokeswoman Kim Su-min said.

Members of the Justice Party, meanwhile, were mostly positive about Lee's speech saying “declaring the willingness to seek income-led growth by both the President and the ruling party leader is a positive sign.”

“If the income-driven policy faced a deadlock, the polarization of incomes might be the biggest reason. It is highly possible that the policies made by the ruling party presently cannot fully bear fruit.”