Democratic Party: "Not a Legoland-triggered Financial Crisis but a 'Kim Jin-tae-triggered Financial Crisis'... Government Neglected for a Month"

Democratic Party "Kim Jin-tae obviously did not provide payment guarantee in Gangwon-do"
Democratic Party to form fact-finding team under Lee Jae-myung's directive
Deo Joeun Mirae "Kim Jin-tae must resign"

Lee Jae-myung, leader of the Democratic Party of Korea, is delivering a greeting at the "Emergency Forum on the Yoon Seok-yeol Government's Economic Disaster, Kim Jin-tae Incident, and Financial Market Crisis Response" held at the National Assembly on the 26th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Naju-seok and Park Jun-yi] The Democratic Party of Korea has defined the financial market liquidity crisis as the ‘Kim Jin-tae-triggered fund market crisis.’ The party has decided to form a fact-finding investigation team at the party level. There were also criticisms that expressions such as the Legoland-triggered financial crisis, used by some media outlets, are inappropriate.

On the 26th, after the Supreme Council meeting, Democratic Party spokesperson Im Oh-kyung told reporters, "The party leader has directly instructed the fact-finding investigation team to clarify the situation, and the announcement will be made today," adding, "We will also present measures for future responses and prevention of recurrence."

Separately from the Supreme Council, the Democratic Party’s Livelihood and Economic Crisis Countermeasures Committee held an ‘Emergency Forum on the Yoon Seok-yeol Government’s Economic Disaster and the Kim Jin-tae Incident Fund Market Crisis Response.’

At this event, Democratic Party leader Lee Jae-myung said, "What is truly incomprehensible is that the state or local governments officially bear legal obligations but refuse to fulfill them despite being able to do so. Isn’t this an abuse of authority?" He requested, "Please accurately investigate the reality and facts of the Kim Jin-tae-triggered financial crisis and consider whether any responsibility can be imposed. Fundamentally, please prepare measures to prevent such incidents from happening again, especially within government sectors."

Kim Sung-hwan, chairman of the Democratic Party’s Policy Committee, pointed out, "On September 20, Jungdo Development Corporation borrowed 20.5 billion won, but reported that about 4 billion won would be difficult to repay. Governor Kim decided on September 28 not to provide payment guarantees, blaming the previous governor, and later processed the final default." He criticized, "The local government guaranteed the payment, and Legoland will continue to be loved by citizens, so providing payment guarantees is natural, but it was not done." Kim added, "This is the beginning of something that should never have happened," and said, "The government neglected the situation for almost a month. I worry whether this can now be stopped even with a tank, when it could have been stopped with a spatula."

Democratic Party lawmaker Heo Young, whose constituency is Chuncheon, said, "This incident has nothing to do with Legoland," and introduced, "Those unaware of the background think it has gone bankrupt, but Legoland is operating well." Heo explained, "The entity that filed for rehabilitation this time is Jungdo Development Corporation, a company established by Gangwon Province to develop tourist sites including Legoland. The province directly established it, holds more than 44% of its shares, and even dispatched five provincial government employees. Governor Kim caused this company to go bankrupt without knowing how it was operated." Heo appealed to the media, saying, "Please name this crisis as the Kim Jin-tae-triggered financial crisis." He also expressed concerns that the incident might cause problems for subsequent investments in Legoland.

The Democratic Party’s parliamentary group, The Better Future, issued a separate statement strongly condemning "the economic collapse triggered by a prosecutor-turned-local government head," and criticized, "The Yoon Seok-yeol government, which has been calling for fiscal austerity, paradoxically intervened in the bond market, and it is unclear whether it will do so properly or when the actual tightening situation will ease."

They said, "Governor Kim, without considering the economic repercussions of the non-fulfillment of payment guarantees, drastically plummeted the credit of Gangwon Province and our country in an instant, simply because the previous governor started it," adding, "And yet he is currently calmly on a business trip overseas." They also criticized Deputy Prime Minister for Economy Choo Kyung-ho, saying, "He failed to predict the ripple effects on the bond market and responded incompetently and complacently, saying ‘Gangwon Province’s problem is for Gangwon Province to solve.’"

The Better Future stated, "The victims of the Yoon Seok-yeol administration, which focuses on political retaliation while ignoring increasingly serious economic problems, are none other than our companies and citizens," and demanded, "The governor must take responsibility for the Gangwon Province-triggered financial market tightening and economic crisis and resign."

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