The People Power Party cited the Lee Jae-myung administration's expansionary fiscal policy as the reason the won's real value has fallen to the level of the 1998 International Monetary Fund (IMF) foreign exchange crisis. It argued that the Lee Jae-myung administration should break away from "populism" and shift its policy stance to sound fiscal management.
People Power Party leader Jang Dong-hyeok said at the supreme council meeting held at the National Assembly on the morning of the 24th, "As the value of the won declines in international transactions, the exchange rate is now on the verge of the 1,500-won range," and added, "The pain the public is experiencing from a high exchange rate and high inflation ultimately stems from the Lee Jae-myung administration's incompetence."
He went on, "The president is so absorbed in blocking his own trial that the economic golden time keeps slipping away," adding, "Among the drivers of rising prices, the Lee Jae-myung administration's reckless expansionary fiscal policy played a part. Expansion of liquidity and an increase in the money supply can only lead to higher prices."
Jang also said, "Next year's handout-heavy budget will push the economy further into crisis, and encouraging debt is not welfare but plundering future generations," stressing, "Even now, the government must shift from an expansionary fiscal stance to sound fiscal management."
Floor leader Song Eon-seog of the same party also said, "Since September, the dollar index has risen by only about 3%, but the won has weakened by more than 6%. Only the won has uniquely lost value," adding, "In a word, it likely means structural distrust of the Korean economy and that the future of the Korean economy is very difficult."
He continued, "As expansionary fiscal policy has been pushed through excessively, wasteful fiscal spending has increased, won liquidity has expanded, and a vicious cycle of rising national debt continues," adding, "What is needed now is not indiscriminate fiscal handouts but structural reform to restore the economy's basic strength."