By-election Job Pledges: "Hastily Made or Recycled... Lack of Consideration for Roles of Min and Government"

Analysis of the 3 Major Pledges in the April 7 By-Election - ① Real Estate ▶ Jobs ③ COVID-19 Support
Evaluation by 5 Economic Experts

Park: Loan and Startup Fund Support Does Not Help Solve Youth Unemployment... Mother Fund Has Feasibility
Oh: Clear Public-Private Role Differentiated from Former Mayor... Lacks Concern for Attracting Companies
Ahn: Startup Ecosystem Needed as Domestic Companies Are Leaving... Incentives and Infrastructure Required

[Asia Economy reporters Naju-seok, Jeon Jin-young, Park Joon-yi] Economic experts analyzed the job creation pledges presented by the ruling and opposition candidates in the April 7 Seoul mayoral by-election. While each pledge had its pros and cons, the overall assessment was that they generally "lack specificity." The absence of detailed implementation plans and funding measures was particularly highlighted as a problem. Many opinions dominated that pledges to create jobs led by the government, rather than fundamental solutions such as methods to attract companies and measures to revitalize industries, leave doubts about whether they will lead to tangible results.

◆ Like ‘hastily prepared pledges’... All three candidates lack specificity = Experts unanimously gave negative evaluations of the job creation measures proposed by Park Young-sun, the Democratic Party candidate for Seoul mayor; Oh Se-hoon, the People Power Party candidate; and Ahn Cheol-soo, the People’s Party candidate. Professor Hwang Soo-sung of Sungkyunkwan University’s Department of Economics pointed out, "It is better to nurture soccer players than to spend trillions of won building good soccer fields," adding, "If you only build buildings, you are just wasting resources." Professor Jung Se-eun of Chungnam National University’s Department of Economics also said, "All three candidates lack concrete consideration on how to secure funding."

Looking into each candidate’s pledges, there are many cases where positive and negative evaluations are mixed. In Park’s case, critical analyses mainly pointed out that her policies "do not differ from existing policies." Park’s representative job pledges include the ‘Youth Starting Asset Pledge,’ which offers interest-free loans of 50 million won to youths aged 19 to 29, to be repaid by ages 30 to 40, and the creation of a 1 trillion won-scale mother fund for startups by investing 500 billion won from Seoul city and its affiliated institutions and attracting private investments. Professor Sung Tae-yoon of Yonsei University’s Department of Economics, analyzing these, said, "They are not much different from the public sector financial support policies currently being promoted by the government," adding, "It feels more like the Minister of SMEs and Startups than a Seoul mayor candidate. It’s just about throwing money around, which could worsen youth unemployment." Park is a former Minister of SMEs and Startups.

Professor Kim Tae-gi of Dankook University’s Department of Economics pointed out, "Young people know that cash handouts are ineffective," adding, "This money does not seem likely to help solve youth unemployment." Professor Hwang also said, "There may be temporary effects, but Seoul’s debt is expected to increase, and it is not a long-term solution." However, Professor Jung gave a positive evaluation, saying, "If the mother fund is well structured, it has the potential to be realized."

◆ Lack of consideration on the roles of government and private sector = Experts also closely examined the candidates’ perceptions of the division of roles between the public and private sectors for job creation. In this regard, Oh’s pledges were evaluated as having a better direction compared to the others. Professor Kim Tae-gi said, "The roles are aligned with companies creating jobs and the city providing vocational training and employment information, which differentiates it from policies promoted by the late Mayor Park Won-soon or President Moon Jae-in." Professor Kim Sang-bong of Hansung University’s Department of Economics also said, "It is meaningful in terms of industrial revitalization," adding, "It is the most realistic among the three candidates." However, Professor Sung regretted, "There is an emphasis on the private sector, but there is a lack of concrete consideration on how to attract companies."

Ultimately, since jobs are created by companies, strategies are needed on what incentives to provide to attract and retain companies. Regarding this, Professor Sung said, "If you say you want to attract such companies, you need to have something to offer, and that requires consideration." Professor Jung said, "It is fine to utilize private sector capabilities, but the state should lead in areas like startups where the private sector cannot," adding, "Leaving this to the private sector is a reversal of roles."

Regarding Ahn’s pledge to create jobs through building a startup ecosystem such as the Convergence Economic Innovation Zone and Startup Support Center, Professor Kim Tae-gi criticized, "Creating a startup city does not necessarily lead to successful youth startups," adding, "It seems like a pledge made without understanding the reality of Korea, where even domestic companies are leaving, let alone attracting overseas companies." He continued, "The direction to make Seoul a good place to do business is good, but there needs to be an answer to ‘how.’" Professor Sung also pointed out, "Jobs may be created through development projects, but for long-term effects, incentives or infrastructure development are necessary, and there is no sign of such consideration."

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