Song Eon-seog of the People Power Party, the floor leader, on the 10th urged the government and ruling party to "delay the enforcement of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, and respond to the real economic crisis by rationally adjusting real estate regulations," he said.
At a floor countermeasures meeting held at the National Assembly this morning, the floor leader Song said, "If (with the enforcement of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers) strikes expand and investment and employment contract, it will come back as a slowdown in domestic demand and increased household burdens."
Song said, "With the Iran war pushing up international oil prices and the exchange rate at the same time, external shocks are expanding," and added, "The third oil shock has already materialized, and the risk of stagflation, where inflation and an economic downturn appear simultaneously, is rising."
He went on, "In a stagflation phase, tightening to tame prices further depresses the economy, and using expansionary policies to revive the economy increases inflationary pressure, making policy responses very difficult," adding, "All the more in such times, economic policy must set aside ideology and stubbornness and approach the market flexibly and meticulously in line with conditions."
Regarding government measures, Song said, "Steps such as a fuel tax cut may help ease short-term shocks, but given the possibility of a prolonged Middle East situation, structural and mid- to long-term response strategies must also be prepared, including stabilizing energy supply and demand, easing logistics cost burdens, and managing foreign exchange market volatility."
Song said, "With external uncertainty expanding, the bigger problem is that the government is pushing ahead with the enforcement of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, starting today and is maintaining excessive curbs on real estate demand," adding, "Now is the time to put the priority of economic policy on people's livelihoods and stabilizing the economy."