Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Ruling party candidate stirs controversy with idea of 'restaurant cap'
Ruling Democratic Party of Korea presidential candidate Lee Jae-myung purchases persimmons at a traditional market in Gwanak District, Seoul, Wednesday. Joint Press Corps
By Nam Hyun-woo
By Nam Hyun-woo
Ruling Democratic Party of Korea presidential candidate Lee Jae-myung stirred controversy with his idea of putting a cap on the number of restaurants in the country, which the main opposition party described as “a totalitarian idea.”
During his visit to a traditional market in Gwanak District, Seoul, Wednesday, Lee floated the idea, saying, “I have a thought of running a system that puts a cap on the number of restaurants.”
Lee mentioned the idea while expressing concerns over the large number of people opening eateries, only to close them down after failing to make ends meet.
“Though debate is required for this idea, I think the system is necessary,” Lee said during a meeting with stall owners at the market. “I wasn't able to introduce the system due to concerns that it could infringe on freedom, but I don't think such a cap is a bad idea … It is not freedom to open restaurants randomly and go broke. Good regulations are needed.”
The comment came as the pandemic and country's social distancing measures have been dealing a heavy blow to small stores. According to a report by the Korea Federation of Micro Enterprise, approximately 453,000 self-employed people have closed their small businesses during the 18 months since the outbreak of the COVID-19 pandemic in January of last year.
Against this backdrop, the remark is interpreted as showing Lee's concern over the saturation of the country's restaurant industry, but at the same time, it has stirred controversy with some by hinting at stricter government control over free market practices if he is elected president.
As the controversy escalated, Lee's camp explained that the candidate did not mean he would introduce such a system, saying, “He reviewed the feasibility of a restaurant cap system in the past, but he now thinks it would be impossible to introduce it.”
On Thursday, Lee also told reporters that he does not mean to introduce the restaurant cap right away when he becomes president, but that there is a need to discuss it.
“Many self-employed choose to open restaurants. Though I'm not sure about the exact number, more than tens of thousands of restaurants open and close every year, so I thought about the system in the past,” Lee said. “We have a wrong idea that deregulation solves every problem. It is not freedom to choose anything and fail.”
Despite the explanation, the conservative main opposition bloc criticized the idea, saying that it is “a totalitarian” approach.
“It is a totalitarian idea,” People Power Party (PPP) presidential contender Yoon Seok-youl wrote on Facebook. “Is Lee saying that the country will design each individual's life? The ruling bloc always highlights the good intentions behind its policies, but never recognizes that these do not necessarily result in a desirable outcome.”
PPP presidential contender Hong Joon-pyo wrote on Facebook, “It is an unconstitutional idea that profoundly violates the freedom of business.”
People Power Party Chairman Lee Jun-seok speaks during a party meeting at the National Assembly, Thursday. Joint Press Corps
PPP Chairman Lee Jun-seok said Thursday that Lee Jae-myung's comment was merely political grandstanding to gain support.
“As many self-employed people are disappointed with the current administration and show support for the opposition, Lee is making a Hollywood action to mislead existing small shop owners by preventing new restaurants from opening,” Lee said. A “Hollywood action” is a Korean loanword phrase referring to an exaggerated response to pain in sports.
The controversy emerged after Lee outpaced both PPP presidential contenders in an Oct. 25-26 poll.
According to the poll by Gallup Korea and Money Today newspaper, Lee secured a 41.9-percent support rate to surpass Hong with 39.3 percent in a contest between the two. In a battle with Yoon, Lee also won by 45.8 percent to 35.7 percent.