At a policy seminar hosted by the People Power Party, criticism emerged that the Lee Jae-myung administration's expansionary fiscal stance is increasing national debt and fueling inflation, wrecking people's livelihoods. In particular, there was also criticism that issuing people's livelihood recovery consumption coupons could trap Korea in a long-term low-growth rut.
Park Su-young, the opposition secretary for the National Assembly's Ministry of Economy and Finance committee and a lawmaker with the People Power Party, held an emergency forum titled "Is the Lee Jae-myung administration's fiscal runaway and fiscal addiction okay as it is?" on the morning of the 30th at the National Assembly Members' Office Building. Attending the forum were People Power Party leader Jang Dong-hyeok, floor leader Song Eon-seok, policy committee chair Kim Do-eup, deputy floor leader for policy Kim Eun-hye, and Finance and Economy Committee chair Lim Lee-ja, among other leaders.
Floor leader Song said, "South Korea's debt ratio has already surpassed the average among non-key currency countries. I don't see why they claim our finances are sound," adding, "They say they want to revive the economy, but the economy will not revive just because they issue people's livelihood recovery consumption coupons. We should focus on policies that save corporations and people's livelihoods, not handouts, so that the economy grows and tax revenue increases."
Host lawmaker Park emphasized, "The economy is in disarray and corporations are struggling, and now even government finances are shaking," adding, "If we do not stop the Lee Jae-myung administration, which is addicted to and running amok with fiscal spending, we expect our future generations will face an even darker outlook."
Yang Jun-mo, a professor of economics at Yonsei University, noted in his keynote presentation that people's livelihood recovery consumption coupons are actually making the working-class economy worse. With national debt rising to high levels and prices increasing, there is concern Korea could become a low-growth country. There was also criticism that if livelihoods grow unstable, corporate investment funds could flow out, making high growth completely impossible.
Yang said, "By turning the country into a place where doing business is difficult through the Yellow Envelope Act (amendments to Articles 2 and 3 of the Labor Union Act) and the Commercial Act amendment, and then spending fiscally, we are seeing Government Bonds prices plunge and interest burdens increase," adding, "The government is flooding the market with money through fiscal deficits, and that money is rushing into Seoul real estate, sending prices soaring. This does not stabilize livelihoods; it destroys them."
He went on, "Without reforming the demographic structure or the economic structure, and with the national debt ratio increasing, the Lee Jae-myung administration's fiscal addiction is a grave concern," adding, "While turning U.S. tariff talks into a maximum crisis, the government has made the outlook for Korea's economy bleak both domestically and internationally in fiscal and monetary terms."
Regarding the president Lee's campaign pledge of people's livelihood recovery consumption coupons, he pointed out, "In the case of last month, the consumer price index (CPI) for food and dining surged 4.9%," adding, "Because of the misallocation of fiscal spending, Seoul apartment prices are rising again, putting pressure on the exchange rate."