Minister Warns of Dangers of Economic Polarization

Vice prime minister and minister of finance and economy Kwon O-kyu said on February 26, “If economic polarization deepens, attacks on the market-oriented economy will expand.”

Kwon made the announcement in a lecture called “The market economy and the social safety net” held in the National Assembly, adding, “Due to polarization, people with vested rights and people in the working class often stand on the same political side against the market economy.”

He added, “Since free competition can induce mass unemployment, excluded classes from the mainstream can be agitated by the upper classes over social issues; therefore, protecting the market economy from resistance by upper and working classes should be the first priority.”

He emphasized, “To minimize resistance against free competition, a principle of fair competition is needed and the corporate governance should be improved.” He also said, “Strengthening property taxes and succession duties rather than income taxes will raise overall economic efficiency.”

Kwon announced, “A social safety net for social outcasts should be constructed and a retraining program for those who change their occupations, improvements in the pension system, and an effective bankruptcy system will be provided,” adding, “A U.S.-Korea FTA, of which negotiations are still ongoing, is part of the government’s efforts to reduce the power of the vested rights class by opening up the goods and capital markets.”

ddr@donga.com