On the 4th, the Constitutional Court dismissed former President Yoon Suk-yeol unanimously, leaving the policies he had promoted lacking momentum.
The Yoon Suk-yeol government, which launched on May 10, 2022, has pursued various policies over the past three years, including reforms in four key areas: pensions, healthcare, education, and labor. However, it has been evaluated that the government failed to secure momentum due to opposition from the opposition parties and controversy over overreaching measures.
Emphasizing the principles of a free market, the Yoon Suk-yeol government advocated for sound fiscal policies and aimed to restore the industrial competitiveness of private corporations. In particular, it provided work opportunities and policy support to help the domestic nuclear power industry, which was at risk due to the previous Moon Jae-in government's phase-out policy. This led to a successful contract worth 24 trillion won for the Czech nuclear power plants.
In the face of a serious low birthrate crisis threatening national extinction, the government achieved some success in increasing the birthrate through various support policies. Additionally, it stabilized the high inflation situation, which had exceeded 6% shortly after taking office. The government's efforts to alleviate excessive property taxes and stabilize the real estate market through large-scale supply policies also received positive evaluations.
Diplomatically, the government left a legacy of strengthening the South Korea-U.S. alliance and normalizing relations with Japan.
However, various national policy tasks, including reforms in pensions, healthcare, education, and labor, failed to yield results and went back to the cabinet. In particular, the healthcare reform that began with the expansion of medical school admissions led to conflicts with the medical community, and the government ended up retreating.
The government's R&D reform also faced significant cuts of nearly 15% in the budget process for 2024, pushing for a massive overhaul but ultimately failing to yield concrete results. The tax cut policies introduced during the economic crisis led to large-scale revenue shortfalls for two consecutive years.
The 'Blue Whale Project,' which was announced by former President Yoon as the first item on the national briefing agenda, also failed in its initial drilling attempt. It remains uncertain whether the next government will continue the resource development. The painful experiences of the underprepared jamboree and the failure to host the 2030 Busan Expo are expected to leave lasting scars.
Above all, the most significant blot on the record is the declaration of an unreasonable martial law, which led to a national emergency. Amid increasing economic uncertainties, such as the inauguration of the Trump administration, the government lost its leadership, damaging South Korea's international reputation. Additionally, the subsequent impeachment process is expected to be recorded as a limitation of the Yoon Suk-yeol government, as it stimulated national division and political polarization.
◇ Normalizing the nuclear power industry... 24 trillion won worth of Czech nuclear power contract
The normalization of the nuclear power industry is the primary achievement attributed to the Yoon Suk-yeol government. The government discarded the previous Moon Jae-in administration's phase-out policy and implemented energy policies centered on nuclear power generation. In July 2022, the decision to resume construction of Shin Hanul units 3 and 4 was made, and construction began in September of the same year. Furthermore, procedures for continued operation of ten nuclear power plants, including Hanul units 1 and 2, which will reach the end of their design life by 2030, were initiated. The government also accelerated overseas nuclear power contracts and was selected as the preferred negotiator for the two units of the Czech Dukovany plant, worth 24 trillion won. After being designated as a preferred negotiator, the knowledge property dispute raised by Westinghouse was successfully resolved based on South Korea-U.S. cooperation.
◇ Work-family balance policies that raised the birthrate
Last year, South Korea's total fertility rate rose to 0.75, up from the previous year's 0.72. This year, the number of births has also increased, continuing the atmosphere of recovering birth rates. In January, the number of births reached 23,947, a 11.6% increase compared to the same month last year. This marks the highest growth rate since statistics began being compiled in January.
The rebound in the birthrate is largely attributed to the increase in marriages due to the COVID-19 endemic, but the government's birth support policies have also played a significant role. The government promoted policies encouraging childbirth, such as expanding parental leave and temporarily abolishing the income standards for special loans for newborns, as well as increasing parental allowances. Tax support was also provided. The government decided to exempt all corporate childbirth support funds from taxation and established a 'marriage tax credit' that grants tax deductions to newlywed couples who register their marriage.
◇ Strengthening the South Korea-U.S. alliance and normalizing South Korea-Japan relations
Former President Yoon's diplomacy can be summarized in two aspects: 'sales diplomacy' and 'improving South Korea-U.S.-Japan relations.' In particular, it has been evaluated that the alliance with the United States, which had been strained during the pro-China diplomacy of the Moon Jae-in government, was restored. A highlight was when former President Yoon sang the pop song 'American Pie' at a White House dinner on April 26, 2023. This event left a friendly impression on South Korea among high-ranking U.S. officials, including President Joe Biden, and is regarded as 'sophisticated cultural diplomacy' within diplomatic circles.
The restoration of South Korea-Japan relations is also evaluated as an achievement of the Yoon Suk-yeol government. It restored shuttle diplomacy between the leaders and resolved export regulations. The improved relations among South Korea, the U.S., and Japan led to the Camp David Declaration, which was the first trilateral joint statement declaring the strengthening of security cooperation among the three countries.
◇ Price stabilization and normalization of property tax systems
At the time of the Yoon government's launch, South Korea was experiencing record high inflation. In July 2022, two months into the Yoon administration, the consumer price inflation rate peaked at 6.3%. This was the highest inflation rate since the Asian Financial Crisis. To stabilize prices, the government implemented policies to expand the supply of agricultural products and increased fuel taxes. The Bank of Korea quickly adopted a tightening monetary policy. Due to proactive price measures, inflation rates decreased to the 2% range again starting in June 2023.
The alleviation of the excessively set property tax systems during the previous Moon Jae-in administration has also received positive evaluations. The government lowered the comprehensive real estate tax rate and eased the heavy taxation on capital gains for multiple home owners, relieving the tax burden on households.
On August 16, 2022, the government announced a plan to supply 2.7 million dwellings to stabilize the real estate market. It relaxed safety inspection standards for reconstruction and abolished the excess profits recovery system for reconstruction, promoting housing supply.
◇ Medical reform that only left scars
Several policies have been pointed out as problematic, with medical reform being a prime example. The conflict with the medical community, triggered by the announcement of an increase in medical school admissions in February 2024, is ongoing. In response to the government's announcement to increase medical school admissions by 2,000, medical organizations protested and immediately took collective action. Initially, trainees across the country withdrew from on-site training hospitals, causing surgeries and hospital admissions to be delayed or canceled, adversely affecting patients.
The martial law declaration on December 3, 2024, which was a core reason for impeachment, included an order for the return of medical professionals, including trainees. The medical community interpreted this as former President Yoon pushing the medical school admission policy by declaring martial law.
The conflict with the medical community worsened, and the patients were the ones who suffered. Many patients encountered 'emergency room loops' while trying to find hospitals to treat them, and critically ill cancer patients faced delayed surgical schedules. The scars left by this conflict continue to this day. Although medical students returned to schools after the Ministry of Education promised to restore admissions, it remains uncertain whether classes will proceed smoothly.
◇ R&D reforms that lost trust in the scientific community
The government's ambitious R&D project reforms met with backlash from the scientific community and ended prematurely. The lack of clear goals on what the issues were and how they would be changed prevented the formation of a national consensus.
The Yoon Suk-yeol government cut the 2024 research and development budget by 14.7% compared to the previous year, allocating 26.5 trillion won. The budget, which was 31.1 trillion won in 2023, has decreased by 4.6 trillion won within a year. This marked the first time a reduction occurred in R&D funding since 1991. The government cited the need to reduce the cartel in the science and technology sectors and inefficient budget execution as the reasons for the cuts.
However, rather than cutting budgets only for problematic projects, the government made sweeping cuts to the entire research project budget, provoking backlash from the scientific community. A year later, the government significantly increased the R&D budget, but during the year when funding was cut, there was considerable confusion in research fields. As a result, evaluations showed that the scientific community lost trust in the Yoon Suk-yeol government.
◇ Unreasonable tax cuts lead to large-scale revenue shortfalls for two consecutive years
Immediately after its inauguration, the Yoon Suk-yeol government actively pursued tax cut policies, especially focusing on corporate tax reductions. The administration argued, 'When the economic conditions are tough, we should reduce the tax burden to secure consumption and investment capacity for private corporations and the middle class. This improvement in corporate management will eventually lead to increased revenue.'
The result of these tax reforms was unprecedented, resulting in a large-scale revenue shortfall for two consecutive years. In 2023, a revenue shortfall of 59 trillion won occurred, followed by a 30 trillion won shortfall in 2024. The biggest reason for the revenue shortfall was the poor corporate tax income. Criticism has also been raised regarding the response method of using designated funds, such as the foreign exchange stabilization fund, to cover the revenue shortfall.
◇ Poor preparations revealed with the jamboree, failed bid for Busan Expo
The 25th World Scout Jamboree, held in summer 2023 in the Saemangeum area of Jeonbuk, attracted global criticism due to inadequate preparations for extreme heat and hygiene conditions. It resulted from poor arrangements made by the Ministry of Gender Equality and Family and the Jeonbuk Province, along with the organizing committee. When the situation worsened, President Yoon urgently dispatched ministers to the scene. Although corporate sponsorship and training centers helped prevent the worst-case scenario, evaluations indicated that South Korea's status as a successful host of global events was diminished.
The government's ambitious bid to host the 2030 Busan Expo also ended with disappointing results. On November 28, 2023 (local time) at the General Assembly of the Bureau International des Expositions in Paris, Busan lost to Saudi Arabia. After the launch of the Busan Expo bidding committee in July 2022, officials traveled nearly 500 laps around the globe to promote the bid but couldn't overcome Saudi Arabia's oil money. During this process, the government mentioned the possibility of a second round but stated, 'We must see it through to the end.' However, the result ended abruptly in the first round, with Saudi Arabia receiving unanimous support.
Additionally, during the Yoon Suk-yeol administration, significant disasters such as the Itaewon tragedy and the flooding of the Osong underpass occurred.
◇ Policies like the 'Blue Whale Project' are still too early for assessment
It is noteworthy whether the 'Blue Whale Project,' which failed to yield results in its initial drilling in the East Sea, can continue under the next government. On June 3, 2024, during his first national briefing, former President Yoon stated, "It has been concluded that there is a very high possibility of up to 14 billion barrels of oil and gas being buried in the East Sea. The amount of natural gas can be utilized for a maximum of 29 years, and oil for over four years," announcing plans to pursue the development of the gas field in the East Sea.
However, no evidence of a gas field was found during the first exploration drilling conducted from December last year to February this year. While the Ministry of Trade, Industry and Energy maintains that there are still six promising structures where gas fields could exist, it is uncertain whether this project will continue under the next government.
The Yoon Suk-yeol government devised a blueprint for a 'semiconductor mega-cluster' to strengthen the competitiveness of the semiconductor industry, a key driver of South Korea's growth. The mega-cluster is expected to establish 16 new fabs based on a total private investment of 622 trillion won by 2047. It is evaluated that the government's vision played a key role in attracting large-scale investments from Samsung Electronics, which committed 500 trillion won, and SK hynix, which invested 122 trillion won. However, many contend that it is still too early to discuss tangible results.
◇ The biggest blot is the declaration of martial law... Dividing the nation
Former President Yoon's greatest blemish must undoubtedly be the unreasonable declaration of a state of emergency martial law. He stated in an emergency address to the nation on the night of December 3 that, "I declare a state of emergency martial law to eradicate pro-North Korean forces and protect the free constitutional order."
Subsequently, the political landscape shifted toward an impeachment phase. Following the martial law period, public anxiety increased, and political chaos grew amid external uncertainties. Additionally, as the impeachment trial progressed, the nation became severely divided over support for and opposition to impeachment.
In this unstable political climate, the exchange rate soared. The commander intended to lead the global trade war was also lost. During the Trump administration's initiation, the United States decided to impose mutual tariffs of 25% on South Korea, but no communication at the level of the two nations' leaders occurred at all. Although the economic crisis was averted from deteriorating further around the economic commander, it was evident that limits existed. And with former President Yoon's dismissal, South Korea's leadership vacuum was ultimately extended by an additional two months.