Democratic Party: "Hold back on wage increases?... Prices are all rising, is that something the government should say?"

Kim Tae-nyeon, Chairman of the Special Committee on Economic Crisis Response of the Democratic Party of Korea, holds a press briefing at the National Assembly on the 28th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Naju-seok and Park Joon-yi] The Democratic Party's Special Committee on Economic Crisis Response criticized Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho's remarks urging restraint on excessive wage increases. There are also calls to use measures such as income-led growth to prevent the economic vicious cycle.

On the 28th, Kim Tae-nyeon, chairman of the Democratic Party's Economic Response Special Committee, commented on Deputy Prime Minister Choo's remarks, saying, "How can you tell people to restrain wage increases?" He added, "With prices and basic costs all rising, should wage workers alone bear the burden? This is something government officials should never say."

Chairman Kim also mentioned, "The call to restrain wage increases raises suspicions that the government is trying to shift the high risk of inflation onto workers."

Democratic Party lawmaker Lee Yong-woo said, "The proportion of wage increases passed on to prices is not significant," adding, "If wage increases are restrained, workers will only suffer more, and it will lead to a vicious cycle and reduced consumption." He continued, "In this situation, we must find ways to compensate income to offset the decline in purchasing power," and said, "Now is the time to use measures like income-led growth."

Lawmaker Lee added, "If consumption cannot keep up due to rising prices, it will fall into the most serious vicious cycle," calling it "a measure that deepens the economic crisis caused by COVID-19."

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