Former Deputy Prime Ministers raise concerns about Korea’s growth

South Korea’s former Deputy Prime Ministers and Minister of Economy and Finance on Wednesday raised concerns about the country’s growth and urged the government to seek social and political integration and technological innovation in new industries, among others.

Four former Deputy Prime Ministers – Jin Nyum, Jeon Yun-churl, Hyun Oh-seok, and Yoo Il-ho – sat down with Maeil Business Newspaper for an emergency interview diagnosing the realities facing the Korean economy and possible solutions.

They raised sharp criticism regarding the economic policy direction of the Lee Jae-myung administration, which has now passed its 100-day mark amid a challenging environment at home and abroad.

Immediately after the new government took office following martial law and impeachment in the country, Korea is facing a trade war triggered by U.S. President Donald Trump.

They urged the government to keep five key points in mind for its success and the revival of the Korean economy. They urged the government’s all-out support for businesses, optimal fiscal policy, responses to Trump’s protectionism, social and political integration, and technological innovation in new industries.

Jeon noted that political stability and social unity, above all, are necessary to overcome the current turbulent situation.

“When estimating economic growth, we must now also consider what impact the political situation at the time had,” he said. “Growth must not be hindered by political and social conflict.”

Jeon’s remarks suggest that politics must be factored in alongside labor, capital, and productivity when calculating contributions to economic growth.

He also criticized the assumption that “handing out consumption coupons will boost consumption and consequently increase investment and employment.”

Hyun and Yoo called for active government support for businesses.

“Until now, government and business have been seen as opposing forces, but now they must truly cooperate,” Hyun said. “Government and business must act as one.”

“In order for the country to drive growth and increase jobs, companies must ultimately thrive,” Yoo added. “We must empower the market to exert greater strength.”

Hyun also positively evaluated the new government’s growth strategy of an “artificial intelligence (AI) grand transition.”

“Given that all sectors - education, culture, industry - are being transformed by AI, we must also build all policies under this new AI system,” he noted.

Jin pointed out that the role of appointed public officials is also crucial if the economy is to take off again.

“Public officials must not simply do as instructed from above,” he said. “Regardless of how the political sphere behaves, the fundamentals of the economy must be led by the government at its core.”