Won Hee-ryong: "Government and Ruling Party Should Not Take Credit for KOSPI 3000"

"It Is Time to Correct Failed Economic Policies"

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Won Hee-ryong, Governor of Jeju Province, stated on the 10th, "The government and ruling party should not be trying to take credit for the KOSPI 3000, but rather should be correcting their failed economic policies."

On the same day, Governor Won wrote on Facebook, "Lee Nak-yeon, leader of the Democratic Party of Korea, said, 'I hope the Donghak Ants grow stronger as a new force supporting our economy, and we will do our best to make the stock market a stage for the public to increase their wealth.' However, this is a situation where the government, which has nothing to boast about in the economic sector due to the disastrous failures of income-led growth and real estate policies, is trying to take big credit for the Donghak Ants' efforts," he said.

He pointed out, "In fact, behind the rush of people into the stock market lies the Moon Jae-in administration's failure in real estate. The skyrocketing housing prices shattered the dream of owning a home through earned income, leading to a desperate belief that the dream of homeownership can only be achieved through capital income. Such sad speculation is one of the key factors driving the stock price rise."

He continued, "Additionally, due to quantitative easing in the U.S. and Europe, U.S. stock prices surged last year to a level that is burdensome. With the development of vaccines and expectations for fiscal stimulus from the Biden administration, risk appetite increased, causing capital to flow into emerging markets, with both individuals and foreigners jointly driving stock prices. As this widens the gap with the real economy, if stock prices undergo a sharp correction in the future, it could become a risk factor that burdens the economy," he added.

Governor Won said, "The stock market reflects expectations for the future, but if those expectations are not supported by actual performance, there is also a risk of a sharp decline. The government and ruling party, cornered by failed economic policies, should not be looking at the stock market and trying to praise themselves. It is time to swiftly correct the overall failed economic policies and firmly strengthen the real economy. Preparation must start today, right now."

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