Jung Jin-seok: "Cause of Economic Crisis Is Not Legoland but 'Sojusung' Public Debt-Induced Crisis"

Jeong Jin-seok, Emergency Response Committee Chairman of the People Power Party, is attending the Emergency Response Committee meeting held at the National Assembly on the 7th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Lee Ji-eun] Jeong Jin-seok, Emergency Response Committee Chairman of the People Power Party, recently claimed that the current economic crisis is not caused by 'Legoland' but by public debt accumulated over the past five years due to income-led growth (Sojuseong).

Chairman Jeong attended the first meeting of the Special Committee on Economic Stability held at the National Assembly on the 7th and said, "The reason why local bonds, known as the most stable investment in the market, are shaking like this is because of the rapidly increasing public debt over the past five years."

He stated, "National debt has increased by 763 trillion won over the past five years, and as of last year, the debt ratio compared to the local government budgets nationwide reached 10.4%. The International Monetary Fund (IMF) recently warned in its 'Fiscal Monitor Report 2022' that the pace of Korea's debt increase over the past five years is about 2.5 times that of advanced countries," emphasizing the crisis caused by public debt.

Chairman Jeong said, "If even public institutions cannot be trusted in the financial market, how much less can private companies be trusted?" and added, "Since the economy is clearly psychological, the People Power Party and the Yoon Seok-yeol administration will actively intervene in advance before the current crisis spreads throughout the economy."

He also urged the members of the Special Committee on Economic Stability, saying, "We will cut off reckless government spending, achieve fiscal soundness, and the government will actively intervene in the credit crisis," and "The public believes that 'the economy is the People Power Party,' so please do your best to meet this trust."

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