The People Power Party criticized the economic policies of the Lee Jae-myung administration on July 19. They argued that while the central bank has begun tightening monetary policy, the government is expanding fiscal spending, leading to a policy mismatch. Concerns were also raised about the volatile stock market and the push for increased property taxes.
Choi Bo-yoon, the party's chief spokesperson, stated in a commentary, "As the Bank of Korea takes measures to stabilize the market, the government is instead pressing the fiscal accelerator, creating a clash in policies."
Choi warned that if this continues, the conflict between monetary tightening and fiscal expansion could undermine the effectiveness of both policies. Typically, when the government injects money into the economy, it can entrench high inflation, forcing the central bank to maintain tight monetary policies. This vicious cycle of fiscal expansion and monetary tightening could prevent price stability and exponentially increase the interest burden on ordinary citizens.
He pointed out that the government has suggested the possibility of another supplementary budget shortly after passing a 26 trillion won budget in April, stating, "They plan to allocate over 800 trillion won for total government spending next year. This is truly irresponsible fiscal addiction and a belief in fiscal omnipotence."
Choi also criticized the stock market's erratic behavior amid rising interest rates. He noted that in July alone, the domestic stock market triggered sidecars and circuit breakers 16 times over 12 trading days, adding that the excessive concentration of funds in specific stocks, particularly single-stock leveraged ETFs, has become a structural time bomb amplifying market volatility.
He remarked, "The government has proposed increasing the basic deposit requirement threefold and halting new listings as a reactive measure, but it has not addressed the root causes." He called for President Lee Jae-myung to apologize and take responsibility for the significant harm caused to the public due to the administration's incompetence and policy failures.
Park Soo-young, a fellow party member, highlighted that in a government demand survey conducted earlier this year, only three out of 19 asset management firms expressed interest in launching a single-stock ETF for Samsung Electronics and SK Hynix. He stated on his Facebook page, "The Lee Jae-myung administration pushed for the launch of a single-stock product for Samsung Electronics and SK Hynix to boost stock prices before the local elections. As a result, the stock market has fluctuated like a casino." He emphasized that it should be investigated whether the administration's calculations were solely aimed at winning the local elections.
Kim Tae-kyu, the party's floor spokesperson, pointed out President Lee's recent mention of strengthening property taxes immediately after selling an apartment for a profit. In a statement, he remarked, "At the very moment he pocketed a profit of about 2.5 billion won, he is proposing to impose more taxes on the people's homes." He stressed that the public is turning away from the president's attitude of discussing taxes while claiming to be without a home after receiving such a profit.
Choi Bo-yoon, the party's chief spokesperson, stated in a commentary, "As the Bank of Korea takes measures to stabilize the market, the government is instead pressing the fiscal accelerator, creating a clash in policies."
Choi warned that if this continues, the conflict between monetary tightening and fiscal expansion could undermine the effectiveness of both policies. Typically, when the government injects money into the economy, it can entrench high inflation, forcing the central bank to maintain tight monetary policies. This vicious cycle of fiscal expansion and monetary tightening could prevent price stability and exponentially increase the interest burden on ordinary citizens.
He pointed out that the government has suggested the possibility of another supplementary budget shortly after passing a 26 trillion won budget in April, stating, "They plan to allocate over 800 trillion won for total government spending next year. This is truly irresponsible fiscal addiction and a belief in fiscal omnipotence."
Choi also criticized the stock market's erratic behavior amid rising interest rates. He noted that in July alone, the domestic stock market triggered sidecars and circuit breakers 16 times over 12 trading days, adding that the excessive concentration of funds in specific stocks, particularly single-stock leveraged ETFs, has become a structural time bomb amplifying market volatility.
He remarked, "The government has proposed increasing the basic deposit requirement threefold and halting new listings as a reactive measure, but it has not addressed the root causes." He called for President Lee Jae-myung to apologize and take responsibility for the significant harm caused to the public due to the administration's incompetence and policy failures.
Park Soo-young, a fellow party member, highlighted that in a government demand survey conducted earlier this year, only three out of 19 asset management firms expressed interest in launching a single-stock ETF for Samsung Electronics and SK Hynix. He stated on his Facebook page, "The Lee Jae-myung administration pushed for the launch of a single-stock product for Samsung Electronics and SK Hynix to boost stock prices before the local elections. As a result, the stock market has fluctuated like a casino." He emphasized that it should be investigated whether the administration's calculations were solely aimed at winning the local elections.
Kim Tae-kyu, the party's floor spokesperson, pointed out President Lee's recent mention of strengthening property taxes immediately after selling an apartment for a profit. In a statement, he remarked, "At the very moment he pocketed a profit of about 2.5 billion won, he is proposing to impose more taxes on the people's homes." He stressed that the public is turning away from the president's attitude of discussing taxes while claiming to be without a home after receiving such a profit.
* This article has been translated by AI.
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