Yoon Chang-hyun: "If Moon Administration Fails to Create Practical Policy Package, Public Will Turn Away"

Warning of a Vicious Cycle from 'Non-Performing Loans to Personal Bankruptcy' When Mortgage Loan Recovery Is Impossible

Yoon Chang-hyun, proportional representation winner of the Future Korea Party. / Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jang Sehee] Professor Yoon Chang-hyun of the Department of Business Administration at the University of Seoul, who entered the 21st National Assembly as number 2 on the Future Korea Party's proportional representation list, said, "If the government, holding executive, judicial, and local powers all at once, fails to create a pragmatic policy package, the public's sentiment will turn within a year."

Known as a financial expert, Professor Yoon stated in an interview with Asia Economy on the 1st, "The perspective of justification overwhelmingly dominated over pragmatism."

Professor Yoon particularly emphasized the urgent need for government support for companies severely affected by the novel coronavirus disease (COVID-19) crisis.

He said, "The number of businesses that remain open must be increased," adding, "It is important to ensure that business continues when COVID-19 ends." He also mentioned, "Focused support is especially necessary for some crisis and marginal companies affected by COVID-19."

He also stressed that real estate policies need to be reconsidered to avoid a prolonged recession like Japan's.

He warned, "Among those who have taken out real estate mortgage loans, if their income disappears and real estate prices fall, there will be pressure to recover the loans," adding, "Besides interest, the principal must also be repaid, and non-performing loans could lead to personal bankruptcy."

Regarding the government's additional budget compilation, Professor Yoon said, "The 40% threshold, which had been the bottom line for maintaining fiscal soundness during the supplementary budget process, has been broken," and added, "When compiling the supplementary budget, it is necessary to minimize bond issuance by reallocating some budget items."

Meanwhile, as the government compiled the first supplementary budget to respond to COVID-19, the national debt ratio increased from 39.8% to 41.2%.

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