[Freshman Survey] Job Solution Divides Ruling and Opposition Freshmen Sharply: "With New Deal" vs "With Deregulation"

Asia Economy Survey of First-Term Lawmakers Shows 52% Support 'Korean New Deal'... Among 42 Democratic Party Members, 41 Respond
93.3% of United Party Cite 'Income-Led Growth' as Root Cause of Job Issues

[Asia Economy Reporter Lee Ji-eun] The aftermath of the novel coronavirus infection (COVID-19) has triggered an 'unemployment crisis.' As of May, the number of unemployed and the unemployment rate reached record highs. The role of the National Assembly in protecting the people's jobs is more important than ever, but the perspectives of first-term lawmakers from the ruling and opposition parties on solutions to the employment issue sharply diverge.

According to the results of Asia Economy's 'First-term Lawmaker Survey' on the 16th, when asked about the 'most urgent task to solve the employment problem (multiple responses allowed),' 52.2% chose 'creating new growth engines through the Korean New Deal.' 'Bold deregulation of companies' was also selected by 50.0% of first-term lawmakers, showing a close contest between the two opinions. This aligns with the Moon Jae-in administration's policy stance, which has continuously emphasized deregulation of companies while promoting the 'Korean New Deal' concept to overcome COVID-19. Regardless of party lines, there is a broad consensus on the diagnosis and solutions to overcome the economic crisis.

However, clear differences appear when looking at each party. Among the 42 first-term lawmakers from the Democratic Party of Korea who responded to the survey, all but one chose the Korean New Deal, showing strong support for the government's core policy. Only 6 out of 45 first-term lawmakers from the United Future Party responded similarly, accounting for 13.3%.

On the other hand, 39 out of 45 United Future Party lawmakers (86.7%) selected deregulation of companies as the urgent task, while only 7 Democratic Party lawmakers (16.7%) did so. This suggests that first-term lawmakers from the conservative party also favor the traditional pro-business policy of deregulation.

First-term lawmakers who chose 'labor flexibility measures such as postponing the 52-hour workweek system' numbered 35, accounting for 38.0%. In particular, 33 United Future Party lawmakers showed a high concentration in choosing labor flexibility, while only one Democratic Party lawmaker responded. This reflects the United Future Party's identity of promoting pro-business policies and diagnosing labor flexibility as an urgent policy strongly demanded by companies.

The issue of tax cuts showed a similar pattern. 'Corporate tax reduction' recorded 12.0%, all of whom were United Future Party lawmakers. Generally, the United Future Party prefers pro-business policies in the order of deregulation, labor flexibility introduction, and corporate tax cuts. This indicates that considerable conflicts over job solutions are expected in the 21st National Assembly. Regarding 'social overhead capital (SOC) investment,' chosen by 17.4%, more respondents were from the Democratic Party: 11 out of 16, with 5 from the United Future Party.

Views also diverged on the job creation effect of the Korean New Deal. Overall, 42.0% evaluated it as 'a fundamental opportunity to solve job problems through the activation of new industries.' However, among 39 respondents, 37 were Democratic Party lawmakers, and only 2 were from the United Future Party. Among all first-term lawmakers, 37.6% predicted that it would 'help in the short term but not be a fundamental solution,' with 60.0% of the United Future Party holding this view.

Due to the influence of United Future Party lawmakers, 18.3% predicted that the effect would be 'minimal in both the short and medium to long term.' This means that 95.6% of United Future Party lawmakers foresee no medium to long-term effect. Among minor parties classified as pro-government, such as the Justice Party, Open Democratic Party, Basic Income Party, and Transition Korea, no responses indicated a 'fundamental job solution.'

Regarding the 'fundamental causes of the employment problem' (multiple responses allowed), 68.5% pointed to 'structural problems due to industrial restructuring.' Although responses from Democratic Party lawmakers were somewhat higher, about half of the United Future Party lawmakers agreed as well. Conversely, 93.3% of United Future Party lawmakers answered 'side effects of income-led growth such as minimum wage increases (45.6%),' while no Democratic Party lawmakers chose this. This shows that first-term lawmakers clearly divide along party lines regarding the Moon Jae-in administration's iconic 'income-led growth' policy.

Regarding 'global economic recession and high external dependence,' 52.2% responded, with Democratic Party lawmakers twice as many as those from the United Future Party. For the analysis of 'passive corporate investment,' 23.8% of Democratic Party and 17.8% of United Future Party lawmakers responded. This not only shows the differing analysis of the causes of the employment problem but also highlights the stark partisan divide in evaluating the Moon Jae-in administration's economic policies. Democratic Party lawmakers mainly cited external and structural causes such as industrial restructuring and global economic recession. Other progressive minor parties gave similar diagnoses. In contrast, the United Future Party viewed income-led growth as a bigger problem than structural factors.

This content was produced with the assistance of AI translation services.