[Interview-Economist] Lee Yong-woo "Unexpected Numbers Will Appear in Q2... Government Must Be Bold"

Lee Yong-woo, elected member of the Democratic Party of Korea. / Photo by Dong-joo Yoon doso7@

[Asia Economy Reporter Park Cheol-eung] Lee Yong-woo, the elected member of the Democratic Party of Korea, is a person familiar with numbers. He has extensive experience in investment finance, including at Korea Investment & Securities, and is a financial expert who served as the CEO of Kakao Bank.

Regarding the economic crisis caused by the novel coronavirus disease (COVID-19), Lee expressed concern, saying, "Unexpected numbers will come out in the second quarter," and added, "The sharp drop in oil prices means that global demand has drastically declined. From the second quarter, this will be fully reflected in figures such as employment, exports, and corporate earnings."

He said that his awareness deepened as he encountered the realities of people's livelihoods during the election campaign. Lee stated, "It was so difficult to visit stores that I felt sorry. Former Future United Party leader Hwang Kyo-ahn’s suggestion to provide 500,000 won per person was probably because he felt the situation firsthand on the ground."

He also believes that the solution lies in the government's proactive role. Lee said, "Since we are currently in a state of shock, emergency measures are needed to ease the situation," adding, "Germany and the United States are also executing measures swiftly, and China, the world's factory, will boldly inject funds if global demand continues to slump. Now is the time to maintain employment while preparing for recovery."

Nevertheless, he holds the position that reform tasks should be pursued in principle, even if some speed adjustments are necessary. Lee said, "There have been many instances where reform tasks were postponed because the economy was difficult," and added, "We must do what aligns with principles. In the case of chaebol reform, the most practical method would be to have each company create and report its own implementation plan."

He prioritizes 'regulations suited to the times' rather than 'deregulation.' Lee mentioned, "We might even form a group of lawmakers related to negative regulation," and said, "Blindly asking for deregulation is essentially a demand to reduce costs, which is no different from asking for money. What is needed is to revise regulations to fit the era of the Fourth Industrial Revolution."

In particular, he holds the view that stronger sanctions are necessary in the capital market. He said, "We need to check whether existing rules are being properly followed and see if there are parts that have become ineffective," adding, "As seen in the U.S. Enron case, which went bankrupt due to accounting fraud, there should be strong punitive damages for rule violations. First, disclosures must be made more transparent."

He defeated Kim Hyun-ah, a Future United Party candidate known as a real estate expert, in the Goyang Jeong district. He self-assessed that one of the reasons for his victory was emphasizing regional economic development rather than just housing prices. Lee said, "I provided a structural explanation that the economy must be revitalized by restarting projects like the Hallyu World development plan, which had not progressed properly, and that this would naturally be reflected in housing prices, which gained a lot of sympathy," adding, "I believe I am well-suited to fill the role of making Ilsan not just a bedroom town but a self-sustaining city."

Lee Yong-woo, elected member of the Democratic Party of Korea./Photo by Dong-joo Yoon doso7@

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