Kim Dong-yeon: "Sojusung Naming Was Wrong from the Start... 16.4% Minimum Wage Increase in 2018 Led by Blue House Policy Office"

Former Deputy Prime Minister of Economy Kim Dong-yeon (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] Former Deputy Prime Minister for Economic Affairs Kim Dong-yeon, who is mentioned as a presidential candidate, criticized the Moon Jae-in administration's income-led growth policy, saying, "The naming itself was wrong."

On the 16th, Kim stated in his book Breaking Taboos of the Republic of Korea, "Growth cannot be achieved by income alone leading. Innovation must also occur on the supply side," revealing his view. This book, which contains Kim’s policy ideas, will be published on the 19th.

He said, "The resolution of issues such as polarization, economic imbalance, and disruption of social mobility, which income-led growth aims for, is certainly the path we must take," but pointed out, "The market’s acceptance was not sufficiently considered, and communication with the market also failed."

Kim, who served as the first Deputy Prime Minister for Economic Affairs under the Moon Jae-in administration, drew attention for his candid remarks on major economic policies such as minimum wage increases and income-led growth during his tenure.

Regarding the minimum wage increase, Kim recalled that when the minimum wage rose by 16.4% in 2018, he proposed, "The scale and speed of the increase should be determined considering our economic situation and the market’s acceptance," but he heard belatedly that the decision had already been made internally under the leadership of the Blue House Policy Office. He said, "I clashed significantly with the Policy Office," adding, "My biggest concern was the impact on employment. I prepared to report the reality frankly to the president, but I was repeatedly blocked."

He continued that as various problems appeared in the market, the minimum wage increase rates were set at 2.9% in 2020 and 1.5% in 2021, saying, "As a result, it looked like we were rushing between extremes. I cannot shake off the regret of what might have happened if it had been managed at an appropriate increase rate."

Kim said that his advocated "innovation growth" was checked by the Blue House Policy Office due to priority issues with income-led growth, revealing, "The Policy Office was particularly sensitive to policies similar to the previous administration or those supporting large corporations."

Meanwhile, he pointed out that "power institutions are overrepresented in politics," noting that in the 21st National Assembly, 46 lawmakers are from legal professions, the highest ratio among occupational groups. He also emphasized that "a constitutional amendment to change the five-year single-term presidency is necessary," and that a constitutional amendment based on a "decentralized presidential system" should be pursued early in the next president’s term.

Kim, who passed both the civil service exam and legislative exam simultaneously and was called the "high school graduate myth," proposed "breaking the iron rice bowl of the public sector" by adjusting the size of public officials and public institutions to an appropriate level and introducing a "public institution sunset clause" to abolish institutions that have achieved their founding purposes.

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