[Editorial] Even the President Does Not Consider “Price Disclosure” Reform

In a meeting with the leadership of the opposition Democratic Labor Party, President Roh Moo-hyun claimed that the disclosure of Korea National Housing Corp. apartment prices, the ruling party’s general election pledge, was not a type of reform and was against market principles. The president also clearly stated his opposition of other proposals by the DLP leadership including the installation of a tax on the rich, the resolution of irregular worker problems through a decrease of businesses that send workers out on dispatch, and protection of the rice market.

Though such a wide gap in opinion probably stems from a difference in the comprehensive assessment of the policy’s pros and cons, confidence in the market economy’s effectiveness, and understanding of open market realities, this editorial page agrees with the president.

If the apartment prices are disclosed, it will have the effect of pulling down apartment prices in the metropolitan areas. However, this will cause a hitch in the Korea National Housing Corp.’s business structure, which offsets its losses in rental housing and regional business with its metropolitan operations. Therefore, there is much concern that the move could eventually deal a blow to the working class people. This is probably the rationale behind the president’s claim that the price disclosure is not a type of reform.

If the issue of irregular workers is resolved without taking market economy principles into consideration, the industrial hollowing-out could speed up and more jobs could be lost in the long run. In the era of globalization, in which money moves across borders with little restriction, it has been witnessed that tax on the rich only triggers money to leak overseas.

The market economy and economic openness was what boosted a nation in absolute poverty into the world’s eleventh largest economy. Though there is a need to fix problems, if we were to go against the fundamental principles of the open market economy in the process, the nation’s growth potential will drop and economic recession will worsen.

President Roh must continue to display unwavering conviction regarding this matter. It goes without saying that he must also realize detailed policies and not stop at rhetoric. The same goes for both the ruling and opposition parties. The ruling party must especially resolve the confusion surrounding the apartment price disclosure. There must be no more hesitancy even after the president has expressed his opposition on reasonable grounds.