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Pres.-elect Park`s biz pledges could fuel social conflict: report

Pres.-elect Park`s biz pledges could fuel social conflict: report

Posted December. 23, 2012 23:13,   


A think tank on Sunday predicted social conflict over the process of President-elect Park Geun-hye executing her economic pledges after her inauguration, urging efforts to ensure interactive communication to reach social agreement.

According to the report by Hyundai Research Institute titled "Expectations for the New Administration`s Economic Policies and Policy Suggestions," the president-elect`s pledges will help boost the economy but also amplify social conflict over plans for economic democratization, improvement of job quality and related funding.

On job policy, the institute said her pledges to increase the number of jobs, including a cut in working hours, job sharing and the wage peak system, will face opposition from management, labor and government. Other pledges on creating quality jobs, including higher compensation for temporary workers and raising the ceiling on the minimum wage, will also fuel conflict among the three parties.

On the president-elect`s pledge to set up a fund of 18 trillion won (16.8 billion U.S. dollars) to reduce the debts of people unable to repay their loans by 50 to 70 percent, the institute said this could be unfair to people who did repay loans and lead to wrong expectations for debt reductions.

According to the institute, the most imminent issue is boosting the economy for low-income people, which should be reflected in next year`s budget via a provisional session of the National Assembly since it needs no law revisions. Extending acquisition tax benefits that end this year is also necessary to boost. the real estate market, it added Finally, the report proposed the legislation of pledges agreed to by both political parties within the first 100 days of Park`s inauguration to raise the administration`s credibility.

Researcher Lee Joon-hyeop, the author of the report, said, "To maximize the effects of her pledges, Park should set up an institution such as a people`s integration commission and invite all interested parties for effective adjustment."