Kim Byung-joon Criticizes Moon Mentioning 'Roh Moo-hyun Anecdote'... "What Will You Do About the 1100 Trillion Won Idle Funds Issue?"

A part of Kim Byung-joon's Facebook post, Chairman of the United Party Sejong City Branch.

[Asia Economy Reporter Lee Ji-eun] Kim Byung-joon, chairman of the Sejong City branch of the United Future Party, pointed out the need to resolve the issue of idle funds amounting to 1,100 trillion won, referring to an anecdote from the past Participatory Government era.

On the 27th, Chairman Kim said on Facebook, "The government, tied down by outdated ideology and strong labor unions, without proper industrial policies, has even dampened the remaining investment enthusiasm. As a result, idle funds have overflowed, causing housing and land prices to soar."

He mentioned an anecdote from 2005 when he discussed housing price issues with the late President Roh Moo-hyun, saying, "When the Participatory Government took office, the stock index was in the low 600s, and by the end of the term, it had risen to around 1800. Money flowed into the industrial sector through the stock market." He added, "Although the real estate policy at the time is often considered a failure, thanks to it, we became the 7th country among the 26 major OECD countries where real estate prices rose the least." He also noted that with a 100 million won stock fund each, he earned 170 million won, and the late President Roh earned 160 million won.

Chairman Kim criticized, "Currently, idle funds amount to a staggering 1,100 trillion won. Since the Moon Jae-in administration, M1 (narrow money) has increased by more than 250 trillion won. This is an unprecedented record. Money that should flow into investment and consumption, especially the industrial sector, is not doing so and is instead accumulating, so how can real estate prices remain stable?"

He pointed out, "Is it possible to correct this now and guide the flow of money toward the industrial sector? It is difficult. Meaningful industrial policies usually have to overcome resistance from labor unions, but this government cannot do that and is trapped by outdated ideology."

Chairman Kim said, "This is a structural contradiction and limitation of this government, and a fundamental difference from the Roh Moo-hyun government, which was able to promote the Korea-US Free Trade Agreement (FTA) and foster the service industry." He added, "Even if housing prices are controlled in this situation, it is worrisome because money may flow into areas more problematic than real estate. Even if it flows into stocks, there is a high possibility of creating bubbles or linking to risky assets."

He stated, "Money is accumulating more and more. In this state, whether it is the capital relocation, relocation of public institutions, or redevelopment and reconstruction, every attempt becomes a speculative arena." He questioned the president and government, "Before talking about real estate measures, what are you going to do about this problem of idle funds?"

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