Former Blue House Economic Chief: "Current Government Pursues Equality of Outcome Over Equality of Process"

Kim In-ho, Chairman of the Market Economy Research Institute, Lecture at Anmin Policy Forum Seminar
'Babo-ya, the Problem is Politics' as the Theme

"Korean Economy, Policy Failure Issues More Serious than External Variables"

Kim In-ho, Chairman of the Market Economy Research Institute, is giving a lecture at the Anmin Policy Forum breakfast seminar on the 7th.

[Asia Economy Reporter Eunbyeol Kim] "The risks to the Korean economy are more serious due to policy failures than external variables. This is because the government restricts competition without understanding the market economy and pursues equality of outcomes rather than equality of process."

Kim In-ho, Chairman of the Market Economy Research Institute, who has served as the Blue House Chief Economic Secretary, Fair Trade Commission Chairman, and Korea International Trade Association Chairman, stated that the problems of the Korean economy ultimately boil down to political issues. He pointed out that citizens, lacking a clear concept of conservatism and progressivism, are trapped by a government that ignores the market, thereby exacerbating economic problems.

In a lecture at the Anmin Policy Forum breakfast seminar on the 7th, Chairman Kim said, "In the 1992 U.S. presidential election, Bill Clinton used the slogan 'It’s the economy, stupid!' but Korea’s situation makes me think of the phrase 'It’s the politics, stupid!'" He explained that the economy develops on a political foundation, but Korea’s reality is thoroughly contrary to market logic.

He said, "In Korea, the conflict is not between right-wing (individualism, freedom, ideologicalism) and left-wing (collectivism, equality, nationalism), but between conservatism and progressivism based on methods of realizing ideology and policy lines," adding, "Without understanding these aspects, the public is swayed by the government’s populist policies."

He cited real estate and labor policies as representative examples. He said, "The current government’s real estate policy has gone beyond cost disclosure and is heading toward extreme socialism," describing it as "nationalism where the state excessively intervenes in the market to solve everything." Regarding labor issues, he said, "If the basic principle of 'no work, no pay' is established and companies and workers freely negotiate, that would suffice, but the state interferes in every matter," and argued, "Even if it starts with good intentions, the idea that 'the government will take responsibility for the people’s lives' ultimately leads to enslaving the people." He noted that under the government’s umbrella, citizens inevitably look to the government whenever issues arise.

He also pointed out that the government is creating an environment that hinders corporate competition. Chairman Kim said, "The current government seems to prefer moderate compromise and leveling down rather than accepting the distinction between winners and losers resulting from competition, and prefers equality of outcomes over equality of opportunity." He emphasized, "Corporate competitiveness comes from 'competition,' and companies that are not chosen by consumers should fall behind. This is true 'economic democratization.'" He advised companies not to expect a government protective shield either. He said, "They must establish transparent management and corporate governance in line with international standards and give up expectations of the government’s role and function as a corporate patron."

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