President faces mountain of challenges post-vacation
President Yoon Suk Yeol talks to a fish merchant in Tongyeong Jungang Market in Tongyeong, South Gyeongsang Province, Monday. Courtesy of presidential office
President Yoon Suk Yeol is expected to confront several significant challenges, including addressing the market rout and implementing the promised reforms, when he returns from vacation.
During his vacation, which began on Monday, Yoon has been visiting various regional areas outside Seoul to boost the local economy. He toured a traditional market in Tongyeong, South Gyeongsang Province, and met with military personnel. The precise length of his vacation is flexible, the presidential office said.
Presidential aides said Yoon has been using the time to rest and explore ideas that can help him tighten his grip on state affairs.
The most pressing concern awaiting the president upon his return is the state of the economy, which is significantly impacting public livelihoods.
On Monday, South Korea’s benchmark KOSPI plunged 8.8 percent, marking its worst loss since the 2008 global financial crisis. This drop was driven by concerns over a potential U.S. economic downturn and increased tensions in the Middle East. As a result, trading curbs were activated for the first time in four years.
While on vacation, Yoon called for close and proactive coordination among relevant institutions and instructed officials to implement measures swiftly.
“We urge the National Assembly to discuss abolishing the financial investment income tax as soon as possible as the tax could further depress the stock market,” the presidential office said, Wednesday.
The financial investment income tax imposes a 20 percent charge on the total income derived from financial products, including stocks, bonds, funds, and derivatives, exceeding 50 million won ($36,335), with a higher rate of 25 percent applied to earnings surpassing 300 million won. The plan won bipartisan support in parliament in 2020, but was postponed until January next year due to strong objections from retail investors.
In the days and months ahead, Yoon will seek to complete reforms in education, labor, pension and healthcare and tackle the country’s low birthrate.
Rep. Park Chan-dae, floor leader and acting chairman of the main opposition Democratic Party of Korea, speaks during a Supreme Council meeting at the National Assembly in Seoul, Wednesday. Yonhap
Yoon intends to hold a briefing on the state of the nation by the end of August. Although the exact topics have not been determined, the briefing will likely address the administration's major policy priorities, reform strategies, and the demographic challenges facing the country.
The president’s to-do list also includes vetoing four broadcasting bills and reinstating the office of the first lady for Kim Keon Hee.
Yoon is widely anticipated to support the Cabinet’s motion for parliamentary reconsideration of four bills designed to alter the governance structure of public broadcasters. If he endorses the motion, the bills will be returned to the Assembly for a revote.
The first lady made a surprise visit to a traditional market in Busan, Tuesday, to support the local economy.
“Pollack roe is a representative food of Busan. Commercializing it by creating a brand character and developing related tourism products is a great way of revitalizing local economy,” Kim said.
On Aug. 15, South Korea will celebrate National Liberation Day and Yoon is scheduled to grant special presidential pardons to politicians and business executives convicted of livelihood-related crimes. The pardons will be reviewed by a panel at the Ministry of Justice on Thursday and sent to a Cabinet meeting for deliberation next Tuesday before they are approved by Yoon.
Also gaining attention is Yoon’s speech on that day, which will showcase the president’s thoughts on state affairs, North Korea issues and Seoul-Tokyo relations.
Further complicating matters is a call from the opposition requesting a one-on-one meeting.
“We request President Yoon to meet with the opposition leader to deal with the economic crisis and discuss overcoming the political division together,” Rep. Park Chan-dae, floor leader and acting chairman of the main opposition Democratic Party of Korea.
The remark came a day after Rep. Lee Jae-myung, former leader of DPK, expressed his wish to meet Yoon again. The two held first one-on-one meeting on April 29.
“The overall economy is currently in a dire state. I would like to meet and talk to Yoon about how we can overcome this situation and resolve parliament stalemate,” Lee said.