[Column] Hong Jang-pyo, Architect of 'Sojusung' Appointed as Head of KDI

[Sejong=Asia Economy Reporter Kim Hyun-jung] ‘Economic design for prosperity.’ This was the goal set by the Korea Development Institute (KDI), known as the nation’s top government-funded research institute, when it opened in 1971. As if to honor the intrinsic value of the need for a detailed five-year economic development plan and the subsequent achievements of economic growth, KDI quickly expanded its size and increased its presence. Depending on the situation, it took on the role of pointing out or proving the government’s failures with numbers, as well as acting as a sharp advisor.

Hong Jang-pyo, a professor at Pukyong National University, has been appointed as the new president of KDI. Although rumors had been circulating since the beginning of the year, there was strong skepticism and disbelief. This is because Professor Hong is the architect of the ‘income-led growth’ policy, which was a flagship policy of the Moon Jae-in administration and is considered a representative failed policy. In March, 19 senior KDI alumni issued a statement blocking him, saying, "It is an unprecedented policy that destroyed the economy and plunged people’s livelihoods into hardship, lacking fundamental economic insight." Even Song Young-gil, leader of the Democratic Party of Korea, criticized Professor Hong’s signature work, solidifying the fact that the limitations and side effects of income-led growth are accepted truths. The implication of this appointment is that no responsibility is being asked of Professor Hong, and he is being given unlimited trust and opportunity.

There are also growing concerns that the spirited policy criticisms and suggestions from younger KDI researchers, which had continued recently, will be blocked. "Regarding KDI’s role, there have always been various opinions that not only preemptive policy proposals but also critical evaluations and analyses of national policies are necessary. A research atmosphere where these multifaceted roles coexist should be encouraged, but it is doubtful whether this will be possible going forward," said one KDI alumnus, whose worry does not seem to be mere nitpicking.

According to the KDI website, the researchers’ management goals are presented as ‘leading reforms in the new economic paradigm’ and ‘contributing to the establishment of national economic policies and economic development.’ This is another expression of the ‘economic design for prosperity’ from 50 years ago. In 2021, as a party responsible for the slow prosperity of the Korean economy, KDI will likely have many reflections on its duties.

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