Is Korea turning socialist?

Some 95 economic experts urged politicians Monday to stop churning out pledges only aimed at winning election votes. In issuing a declaration of intellectuals, they warned that such pledges can raise the fiscal deficit and national debt and plunge the country into an economic crisis similar to those of Latin American and Southern European countries. The main opposition Democratic United Party is pouring out populism pledges for free school lunches, free childcare and cuts in college tuition. The ruling Saenuri Party is following the opposition`s populist tactics for fear of a fall in popularity.

Park Dong-woon, honorary professor at Dankook University in Seoul, said, "Rampant populism policies make me mistakenly think that Korean society is turning into a socialist state," adding, "The younger generation shouldn`t support lawmakers who try to entice them with populist measures, including cash handouts. They should be aware of what situation these populist policies will put them in 20 years later." The role of an intellectual is to inform the public of the harmful effects of populism and arouse the people`s attention.

Pledges of free school lunches, childcare and health care that the ruling and main opposition parties are trying to put forward ahead of the April general elections are copies of what the minor opposition Democratic Labor Party proposed at its official party launch in 2000 and the presidential election in 2002. Back then, the ruling and opposition camps criticized the pledges as impractical. The government`s fiscal capacity is weaker now than it was 10 years ago, while the low birth rate and rapidly aging population demand further fiscal spending. Welfare pledges without considering fiscal priority and burden are a prince in disguise.

The Democratic Labor Party made these pledges 10 years ago based on the policies of Northern Europe`s social democratic parties and labor groups. Northern European countries, however, are adjusting their welfare policies to refrain from giving out money to support childcare and caregiver services. They simply cannot continue to make ends meet with cash handouts. Korea has different demographic conditions than Northern European countries, whose populations range from five million to nine million people per nation. The Greek economy is struggling due to chronic and rampant welfare, but the Greek people are resisting sharing the pain caused by such welfare policies.

In Korea, a law on guaranteeing up to 55 percent of losses on savings made at debt-ridden savings banks has drawn criticism from intellectuals. Ha Tae-hoon, head of the judiciary supervisory center at the civic group People`s Solidarity for Participatory Democracy, and Lee Heon, co-chair of Lawyers for Citizens, called the law populist legislation simply intended to win votes. The legislation goes against market economy principals and must not pass the parliamentary plenary session.