Chairperson Lim Lee-ja of the Strategy and Finance Committee noted that discussions could be held on the Democratic Party's proposed "public institution head appointment prohibition law" based on the premise that it will not be applied retroactively. She also expressed a positive stance regarding raising the standards for preliminary feasibility studies.
Chairperson Lim mentioned during an interview with ChosunBiz conducted in her office on the 2nd that, while expressing concerns about the government and ruling party's economic policies, there are areas for dialogue that can be discussed and negotiated.
Chairperson Lim, a member of the People Power Party representing the Sangju and Mungyeong districts, was elected as the first female chairperson of the Strategy and Finance Committee in the history of the Constitutional government. She has emphasized field visits to corporations and communication.
Chairperson Lim stated that there is room for discussion regarding the ruling party's so-called "public institution head appointment prohibition law" as long as it excludes retroactive application. The ruling party is pushing for an amendment to the "Act on the Operation of Public Institutions" that aligns the terms of public institution heads with that of the president.
The key issue with this law is whether it will be applied retroactively. The thoughts of the ruling and opposition parties differ on whether it should apply to heads appointed by the Yoon Suk-yeol administration or those appointed in the future by the Lee Jae-myung administration. Chairperson Lim said, "The retroactive application could be unconstitutional," and remarked, "If this law is applied from this government, I see no reason for us not to accept it."
She also expressed her agreement with raising the standards for projects subject to preliminary feasibility studies (preliminary feasibility studies) that were pushed by the Presidential Committee on Policy Planning under the Lee Jae-myung administration. There is a high level of consensus regardless of party affiliation, as Kim Tae-heum, the governor of South Chungcheong Province and a member of the People Power Party, publicly requested this from Chairperson Lim.
Chairperson Lim stated, "The preliminary feasibility study standards have remained the same for 26 years, and considering GDP, inflation rates, and changes in labor costs, it is appropriate to raise them," adding, "Since the Democratic Party is also of the same opinion, it should proceed smoothly."
However, Chairperson Lim strongly criticized the tax reform plan and the results of the Korea-U.S. tariff negotiations under the Lee Jae-myung administration. She stated, "The failure of income-led growth and real estate policies during the Moon Jae-in administration was due to ignoring the field and market," expressing concern that the policies of the Lee Jae-myung administration are flowing towards state perfectionism and worrying about a repetition of the same mistakes.
Chairperson Lim remarked, "The reason for pursuing private-led growth to enhance corporate competitiveness during the Yoon Suk-yeol administration was in reflection of the deepening fiscal deficit and increased welfare expenditure due to aging," and added, "However, the Lee Jae-myung administration seems overly confident that the state can do everything."
Such economic policies aimed at becoming a large nation will inevitably lead to an increase in fiscal expenditure, and tax increases will have to follow to secure funding. The proposed increases in corporate tax, securities transaction tax, and strengthening standards for capital gains tax in the first tax reform bill of the Lee Jae-myung administration are explained in this context.
Chairperson Lim criticized, "If a burden is being passed on to corporations and individual investors, how can businesses withstand if the management environment is made even more difficult by laws like the yellow envelope law and commercial law?"
She expressed skepticism regarding the explanation from the government and ruling party that tax increase policies are for income redistribution. Chairperson Lim stated, "If the root of income itself dries up, redistribution will be impossible," and criticized, "Since expansionary fiscal policies are being pursued, by the end of the Lee Jae-myung administration, the D1 (government debt) is said to reach 58%, and it seems that the Lee Jae-myung administration will have used up the 60% that the government has set as a deadline."
She also pointed out that there is "no resolution of uncertainty" regarding the results of the Korea-U.S. tariff negotiations. She said, "I had high expectations for the Korea-U.S. summit, but nothing has been resolved in regard to uncertainties," adding, "There is no clear answer regarding opening agricultural and livestock products, and I hoped to find a solution regarding the 50% tariffs on steel and aluminum, but nothing has changed."
Additionally, she raised her voice, stating that she has not been properly informed about the results of the Korea-U.S. tariff negotiations or the government reorganization plan involving the Ministry of Economy and Finance. Chairperson Lim said, "While they talk about cooperation, they do not provide accurate information," and remarked, "Such arrogance cannot last long."
Chairperson Lim stated that she plans to thoroughly examine and prepare support measures in relation to how the Korea-U.S. tariff negotiations will impact our economy during the September regular National Assembly and October national inspections. She is also preparing a special law to provide financial support to small and medium enterprises that are expected to suffer due to tariff increases.
Chairperson Lim stated, "When visiting industrial sites in Dangjin, Gumi, and Gyeongsan, I found that the operating profit margin of small and medium enterprises is only about 3-4%, and the situation is becoming more difficult with the added tariff increases," adding, "I am preparing a special law to assist industries vulnerable to tariff increases, including automobile parts."
The bill is expected to include various financial support measures such as low-interest loans through policy financing institutions, expanded guarantees, and interest support. It will also include the establishment of a financial support fund for vulnerable industries and the activation of a temporary liquidity supply program.
Chairperson Lim said, "All answers lie in the field, so I try to actively listen to the voices of the people," and stated, "I will hold the Strategy and Finance Committee's plenary meetings regularly so that the members of the ruling and opposition parties can fiercely discuss citizens' grievances and work towards solutions."