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| Yim Jong-yong, a nominee for Korea's deputy prime minister and finance minister, speaks during a press conference at the government complex in Gwacheon, Wednesday. / Korea Times photo by Seo Jae-hoon |
Yim vows not to tolerate speculative real estate investment
By Park Hyong-ki
Yim Jong-yong, the nominee to become Korea's deputy prime minister and finance minister, said Wednesday that the country needs to further implement an expansionary fiscal policy in the face of growing economic uncertainties both at home and abroad.
Also, the nominee underlined that he will not allow speculative investments in real estate as they are hazardous to the economy.
"I believe there is a need (for a further fiscal stimulus) as the economy has been in a slump for a long time amid growing external uncertainties," Yim told the press after his nomination.
"I will not allow speculative investments in the real estate market as they will harm the economy."
Yim said he will make sure that surging household debt will not become a hazardous element for the economy.
"I will manage household debt stably to prevent it posing risks to the economy," he said.
He also said the government will take steps to surgically tackle increases in home prices depending on regions.
The former Financial Services Commission (FSC) chairman said he accepted the nomination with great responsibility to fix and reform the market.
A number of challenges await Yim, besides low economic growth — rising youth unemployment, corporate debt restructuring, high household debt and sluggish consumption among others.
However, it remains to be seen whether Yim will be able receive full bipartisan support and secure the nomination as the new finance minister amid the scandal involving President Paark Geun-hye and her associate Choi Soon-sil, who is being dubbed "Park's shaman advisor" by some of the foreign press.
Observers say the new nominees named today, including Yim, will find it hard to secure their jobs and pursue structural reform, which he said was one of his top priorities, while trust in the government has hit rock bottom.
"Unless confidence can be restored in the government and the broken system is repaired, they are expected to face difficulties in gaining support to tackle socioeconomic problems in the country," said an analyst, who asked not to be named.
The Democratic Party of Korea announced its opposition to the president's appointment of Yim and others, saying that it will not hold a nomination hearing.
Already, the political parties are refusing to ratify the appointment of the country's new Prime Minister Kim Byong-joon by Park, which political analysts say was a move to withstand the growing pressure and public outcry demanding her resignation.
Even before securing a bipartisan agreement on a neutral Cabinet and giving more authority to a prime minister, President Park, whose approval rating has fallen to around 9 percent, pushed ahead and appointed a new finance minister without yielding to demands.
As FSC chief, Yim was criticized for belatedly dealing with the debt fallout of Hanjin Shipping and rising mortgages.
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