Opposition leader could drop local voucher pledge if needed for supplementary budget
Rep. Lee Jae-myung, chair of the liberal main opposition Democratic Party of Korea, is emphasizing pragmatism and economic growth these days.
Lee said last Friday that he would give up his signature campaign pledge to give every Korean 250,000 won ($171) in the form of vouchers to be used at local businesses -- which some describe as a de facto cash handout and others liken to a universal basic income -- out of the government budget under the pretext of supporting people's livelihoods, if the plan is a stumbling block in formulating a supplementary government budget.
His remarks deserve a positive assessment, considering the government, ruling and opposition parties have not had an adequate meeting so far though a supplementary budget is needed to boost growth momentum and ease people's financial difficulties.
The pledge has been criticized as populist by some. Some experts have warned that giving handouts to every Korean would have little effect on reviving domestic demand and would only aggravate national finances. Meanwhile, the current government expects a shortfall of tax revenue amid the difficult economic conditions.
Lee’s policy shift was also revealed at his New Year press conference on Jan. 23. Saying that he was reconsidering his key policy to guarantee a universal basic income, he stressed that “ideology does not put food on the table” and that “no matter if a cat is black or white, as long as it can catch a mouse, it is a good cat.”
On Saturday, mentioning the news that AI model DeepSeek has been created by a startup in China, he urged the government to provide full support for the domestic AI industry.
In a recent interview with The Economist, he said that his party's guiding value is "pragmatism."
The sincerity of his remarks may not readily hit home for some because they may seem quite different from his past words and considering that his party has rejected numerous bills. His apparent change in position seems a politically motivated approach in consideration of a possible early presidential election, rather than his wholehearted move to help the formulation of supplementary budget.
Some local media suspect it is his strategy to expand his support base to moderates. Support for his party dropped for four weeks straight according to a Jan. 13 Realmeter poll, as moderates reacted against the behavior of the party and Lee, some of whom view the party as an occupation force over the government following the parliament's impeachment of Yoon Suk Yeol.
Only ruling party lawmakers would not say, "that’s rich," to the Democratic Party, which is pushing the government to make a supplementary budget after slashing the 2025 budget by more than 4 trillion won ($2.7 billion), stripping authorities in the Yoon administration of confidential funds. If the party had not curtailed the government's budget plan unilaterally and passed it through in December, there would be no need to rush a supplementary budget as it is now.
There is no need to blame Lee for reviewing his policy priorities and showing a flexible attitude. His intention aside, it is desirable for the leader of the party with the majority of seats in the parliament to emphasize the economy and growth.
What matters is consistency between words and actions. When he ran for chair of the Democratic Party last July, he stressed growth numerous times. But the actions of the party thereafter were a far cry from its words. It pushed a Commercial Act revision bill to expand corporate directors' duty to shareholders, which some feared could cause the side effect of excessive litigation by shareholders and the “Yellow Envelope Bill," which seeks to cap employers’ ability to make damage claims against unions for legal labor disputes, which some thought would encourage strikes.
If Lee’s promises have sincerity, the party should give up its efforts to push such bills and speed the legislative process of other economic revitalization bills.
The best way for a steady administration of state affairs amid political turmoil in the wake of the impeachment process for the president is to discuss issues and take necessary steps through a consultative body involving the government and rival parties.
The body was launched in December, but it has been all but inactive. Its activation should be hastened and it needs to be institutionalized -- before Lee changes his mind again.
