[Bbang Gubneun Tajagi] Achievements and Limitations of the Moon Jae-in Government

[Asia Economy Reporter Park Byung-hee] "Advanced Country of Borrowed Time" and "Income-Led Growth, An Unfinished Journey" are books evaluating the achievements and shortcomings of the Moon Jae-in administration, one month before the end of his presidential term.

Former Minister of Justice Cho Kuk explains the meaning of "borrowed time" as follows: "Advanced Korea was built on the sacrifice of socially and economically vulnerable classes, groups, and strata, and it contains serious problems of inequality and polarization. The title of an advanced country is a title borrowed in advance with the expectation that Korea will solve these problems despite them."

This is in line with what novelist Jo Jung-rae said at the 2019 press conference for his novel "The Question of a Thousand Years," which dealt with a large corporation slush fund scandal. Jo Jung-rae said at the publication event that he had been contemplating the economic structure since the Vietnam War. "Through the Vietnam War boom, Korean companies made enormous profits, and the issue of distribution began to be discussed. At that time, the Prime Minister said it was not the time for distribution but for accumulation. He said that without fostering internationally competitive companies, we have no future. All the people silently accepted those words, and the years waiting for distribution accumulated. However, many administrations have changed since then, but without an official declaration to start the distribution period after the accumulation period, the per capita income reached $30,000."

A similar context can be read in "Income-Led Growth, An Unfinished Journey," published by the Special Committee on Income-Led Growth. "Before the Moon administration, the paradigm of the Korean economy was based on unbalanced growth relying on the trickle-down effect of export-oriented large corporations. The logic was that if large corporations and export-oriented economic growth lead domestic investment, it would induce the growth of small and medium enterprises and job creation, thereby increasing household income and improving distribution. The unbalanced growth paradigm once played a key role in leading catch-up compressed growth. However, the trickle-down effect diminished over time. Meanwhile, the gap between households and companies, and between workers in large corporations and small and medium enterprises, widened."

The recognition that inequality and imbalance are problems is a common understanding regardless of progressive or conservative ideology. Although the United Nations Conference on Trade and Development (UNCTAD) changed Korea’s status from a developing country to an advanced country in July 2021, domestic media raised questions about whether Korea is truly an advanced country by citing low happiness indices and other factors. During the 2017 presidential election, major candidates, regardless of progressive or conservative ideology, pledged to raise the minimum wage to 10,000 won. At that time, candidates Moon Jae-in, Sim Sang-jung, and Yoo Seung-min promised 2020, Ahn Cheol-soo promised within his term (effectively 2022), and Hong Joon-pyo also specified 2022 as the target year for achieving a 10,000 won minimum wage. Although the initial minimum wage increase under the Moon administration sparked controversy, it was a matter of speed, not direction. The entire income-led growth policy should not be rejected because of the minimum wage controversy.

Both books are based on abundant statistical data. This appears to be an effort to neutralize attempts to belittle the Moon administration’s achievements. The text also reveals dissatisfaction with selective media coverage. There may be discomfort not only from those who deny the Moon administration but also from moderate groups who feel the achievements are overly emphasized.

However, the books also specify challenges and limitations along with achievements. For example, Chae Yi-bae, a member of the Democratic Party’s Emergency Committee, criticizes in "Income-Led Growth, An Unfinished Journey" that after failing to fulfill the 10,000 won minimum wage pledge, the Moon administration hastily introduced the Job Stability Fund as a patch to cover wage increases with taxes.

As the recent presidential election results show, evaluations of the Moon administration are divided. For the sake of unity, an accurate assessment of achievements and shortcomings is necessary. It is also important to note that both U.S. President Joe Biden and German Chancellor Olaf Scholz pledged significant minimum wage increases during their candidacies. Attention should be paid to this global trend.

Advanced Country of Borrowed Time / Written by Cho Kuk / Medici Media / 16,000 won

Income-Led Growth, An Unfinished Journey / Written by Special Committee on Income-Led Growth / Medici Media / Free

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