How come ruling Saenuri party becomes weak to President Park

President Park Geun-hye called the ruling Saenuri party leadership including Chairman Kim Moo-sung and Floor Leader Yoo Seung-min to the presidential Cheong Wa Dae on Tuesday. “Domestic economy has been sluggish. The National Assembly’s cooperation is desperately needed to stimulate the economy,” President Park said, asking for the ruling party to assume a leading role. As the ruling party’s comment that President Park said she has never mentioned ‘welfare without tax increase’ caused a stir, and it took the word back at the request of the presidential office.

Saenuri Chairman Kim and Floor Leader Yoo have recently emphasized that it is not possible to achieve welfare without tax increase and it is also not fair for politicians to fool the public with such words. These comments can be interpreted as aiming at the president, who has been holding onto the stance for the government “to revive economy and do a better job in welfare,” amid ever-dwindling budget for the welfare. But it remains a question whether the party leadership raised that issue to the president on that day.

Kim reportedly said at the meeting with President Park, “I fully agree with the (President’s) words that economic revival has the highest priority. I feel sorry that the ruling party didn’t do a good job for supporting in the Assembly.” Yoo expressed his regret, as if writing an apology letter, saying, “We (at the ruling party) will do our best to pass the economic stimulation bill, which the president worries about.” Based on the ruling party leadership’s remarks, it is highly concerned that the two just chimed with the president despite their previous commitment to be "a party leader who gives candid advice to the president," or to "make the ruling party lead the state affairs."

Saenuri party members probably have voted for Chairman Kim and Floor Leader Yoo, both outside the pro-Park faction, as they wanted Kim and Yoo to make a strong ruling party to lead the state affairs at the latter half of the Park administration. As the president’s approval rating is lower than that of the ruling party, Saenuri must be able to give candid advice to the president, saying, “The presidential campaign pledge for free-for-all welfare needs to be adjusted according to the nation’s financial status.”

The government announced on Tuesday that the national tax income has been decreased by 10.9 trillion won (approx. 9.95 billion U.S. dollars) last year. It is the highest-ever tax revenue deficit, bigger than 8.6 trillion won (approx. 7.85 billion dollars) in 1998 right after the foreign exchange crisis. The administration has increased the budget expecting economic revival, but ended up with snowballing tax revenue deficit due to sluggish economy. If the government maintains the current welfare system, spending in welfare would amount to 300 trillion won (approx. 273.9 billion dollars) 16 years later. It is clear that such growing deficit would create severe financial difficulties and pass the burden to future generations. Although the presidency is a single-term system for five years, there is no tenure for the Saenuri Party. President Park and the ruling Saenuri Party must provide a clear solution on how to fill up the tax revenue.