{"id":2202122,"date":"2023-08-31T20:49:20","date_gmt":"2023-08-31T11:49:20","guid":{"rendered":"https:\/\/koreapro.org\/?p=2202122"},"modified":"2023-09-06T17:00:37","modified_gmt":"2023-09-06T08:00:37","slug":"yoon-braces-for-political-battle-as-he-unveils-dramatically-scaled-back-budget","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/08\/yoon-braces-for-political-battle-as-he-unveils-dramatically-scaled-back-budget\/","title":{"rendered":"Yoon braces for political battle as he unveils dramatically scaled back budget"},"content":{"rendered":"

In a move reflective of his administration\u2019s conservative leanings, South Korean President Yoon Suk-yeol <\/span>unveiled<\/span><\/a> a budget for 2024 on Tuesday that called for the smallest annual hike in spending in nearly two decades.<\/span><\/p>\n

Capped at $496.5 billion (656.9 trillion won), the budget marked the most modest increase since 2005 at just 2.8%, thanks to significant budget cuts in some areas.<\/span><\/p>\n

But while the cuts align with Yoon\u2019s conservative fiscal policy, they come at the expense of investment in research and development. And after a draw-out battle to pass the budget last year, and ahead of major parliamentary elections next year, the main opposition Democratic Party is sure to fight tooth and nail over the administration\u2019s spending priorities.<\/span><\/p>\n

R&D CONUNDRUM<\/b><\/p>\n

The budget heavily emphasizes infrastructure, earmarking funds for projects like the <\/span>KTX high-speed train network<\/span><\/a> and the new <\/span>Gadeok island airport in Busan<\/span><\/a> \u2014 endeavors that can generate immediate job opportunities and stimulate local economies.<\/span><\/p>\n

However, other important areas like research and development witnessed significant cuts, with the R&D budget reduced by a staggering <\/span>16.6%<\/span><\/a>. The sharp decline in R&D allocations has sent shockwaves throughout the local tech and industrial community, raising concerns about the government\u2019s dedication to making sure South Korea remains a powerhouse in the global technology landscape.<\/span><\/p>\n

Such significant cuts could stifle innovation and place the country at a disadvantage, especially when global competitors continue to ramp up investments in next-gen technologies, from semiconductor manufacturing to green energy solutions.<\/span><\/p>\n

For instance, Taiwan\u2019s <\/span>tax incentives<\/span><\/a> for chip investments and the U.S. <\/span>CHIPS and Science Act<\/span><\/a> indicate a clear commitment to prioritizing long-term technological expansion.<\/span><\/p>\n

In the current technological climate, reduced R&D investment might endanger the nation\u2019s foothold in critical sectors. The ripple effects could reach domestic job markets too, potentially reducing the number of high-tech roles and suppressing the birth of groundbreaking Korean startups.<\/span><\/p>\n

Nevertheless, this budget aligns with Yoon\u2019s campaign trail assurances, which saw him pledge to uphold <\/span>fiscal responsibility<\/span><\/a> and shift from the previous Moon Jae-in administration\u2019s spending habits.\u00a0<\/span><\/p>\n

During his cabinet meeting address Tuesday, Yoon stated that the national debt increased by $302.2 billion (400 trillion won) due to the Moon administration\u2019s spending habits, causing it to surpass $755.6 billion (1,000 trillion won) for the first time last year.<\/span><\/p>\n

Thus, the emphasis on infrastructure somewhat aligns with his promises of boosting the domestic economy and creating jobs. But the decision to reduce R&D seems to diverge from his vision of fostering innovation and securing South Korea\u2019s place on the global stage.<\/span><\/p>\n

NORTH KOREAN HUMAN RIGHTS IMPLICATIONS<\/b><\/p>\n

The cuts in the R&D sector, however, are dwarfed by those related to South Korea\u2019s <\/span>Ministry of Unification<\/span><\/a> (MOU). The Yoon administration has delivered a 22.7% budget cut to the ministry but carved out 10.4 billion won to build a state-run center for North Korea\u2019s human rights in Seoul.<\/span><\/p>\n

The second consecutive budget cut to the MOU reflects Yoon\u2019s consistent criticism of his predecessor, former President Moon Jae-in. Moon\u2019s tenure emphasized detente, prioritizing improved ties with the North, and his policy often led to a <\/span>muted response<\/span><\/a> from Seoul regarding Pyongyang\u2019s human rights abuses.<\/span><\/p>\n

Yoon\u2019s presidency has brought a significant shift in South Korea\u2019s policy toward its northern neighbor. Promoting a <\/span>\u201cvalues-based\u201d foreign policy<\/span><\/a>, his government has not hesitated to call out North Korea\u2019s human rights record.<\/span><\/p>\n

The fact that the Yoon administration has committed significant funds for the human rights center in a year of budgetary reductions underscores its importance to the administration\u2019s North Korea policy.\u00a0<\/span><\/p>\n

While the MOU aims to significantly rein in spending for inter-Korean economic projects, it plans to collate, streamline and conserve records of human rights infringements and the current state of human rights in the DPRK.<\/span><\/p>\n

While human rights advocates and other democratic governments might laud Yoon\u2019s direction, the main opposition Democratic Party will likely castigate him and point to the reduced allocation for inter-Korean dialogue as proof that his stance jeopardizes South Korea\u2019s national security.<\/span><\/p>\n

\"\"

South Korean senior citizens playing chess in a park on March 16, 2013 | Image: Terence Lim via\u00a0Flickr<\/a>\u00a0(CC BY-ND 2.0<\/a>)<\/em><\/p><\/div>\n

BATTLE OF THE AGES<\/b><\/p>\n

Yoon\u2019s 2024 budget proposal promises a significant uptick in job opportunities for senior citizens, up from 147,000 to 1.03 million. Moreover, seniors on a basic pension participating in social service jobs can anticipate a monthly payout of 968,800 won, reflecting the president\u2019s promise to pursue \u201cgenuine welfare for the vulnerable.\u201d<\/span><\/p>\n

However, this budgetary focus is also political. The upcoming April parliamentary elections are on the horizon, and Yoon\u2019s conservative ruling party has traditionally enjoyed the support of senior citizens. This age bracket has proven to be an influential voting bloc, consistently showing up at the polls and making their voices heard.\u00a0<\/span><\/p>\n

By enhancing their economic prospects, Yoon isn\u2019t just providing them with better financial stability but is also cementing their loyalty to his party.<\/span><\/p>\n

Recent events have made senior citizens\u2019 votes even more pivotal. Kim Eun-kyung, the head of the main opposition Democratic Party\u2019s Innovation Committee, drew flak for <\/span>remarks<\/span><\/a> that appeared to describe senior citizens as those \u201cwith a short future.\u201d<\/span><\/p>\n

This controversial statement could not have been more ill-timed for the Democratic Party. Such sentiments alienate a significant portion of the electorate and provide the conservative party with an unexpected gift: the chance to present itself as the genuine champion of senior citizens.<\/span><\/p>\n

Social welfare programs aimed at senior citizens often reap political dividends as the elderly typically have higher voter turnout rates than younger demographics. By bolstering opportunities and financial support for them, Yoon is catering to their economic necessities and also shoring up political capital.<\/span><\/p>\n

GEARING UP FOR A FIGHT<\/b><\/p>\n

As Yoon presents his budget proposal to the National Assembly tomorrow, he braces for an uphill battle reminiscent of <\/span>last year\u2019s budget fight<\/span><\/a>. But the stakes this year are higher and the divisions are deeper.<\/span><\/p>\n

South Korea\u2019s parliament greenlit Yoon\u2019s inaugural full-year budget for 2023 on Dec. 24, 2022, an approval that came 22 days after the mandated deadline and marked a stark departure from parliamentary norms. The bone of contention then was <\/span>corporate tax cuts<\/span><\/a>.<\/span><\/p>\n

This year, the epicenter of controversy surrounds Japan\u2019s Fukushima nuclear power plant. Since Tokyo <\/span>released<\/span><\/a> more than one million metric tons of treated contaminated water from the facility, the Korean political scene has been ablaze with debate over the Yoon administration\u2019s <\/span>response<\/span><\/a>.<\/span><\/p>\n

In the 2024 budget proposal, the Yoon administration earmarked $557.6 million (738 billion won) \u2014 a hefty $151.1 million (200 billion won) surge from the previous year \u2014 to increase the number of radiation investigation points in domestic and international waters, expand the scale of radiation tests on seafood and promote the consumption of seafood.<\/span><\/p>\n

Democratic Party spokesperson Lee So-young <\/span>accused<\/span><\/a> the Yoon administration of virtually defending Japan at the expense of South Korean taxpayers.<\/span><\/p>\n

The ruling People Power Party is vying to portray itself as a voice of calm, while the Democratic Party has taken up the mantle of defenders of the public from radiation poisoning. As a result, the upcoming budget discussions could exceed last year\u2019s vitriol.<\/span><\/p>\n

As the clock ticks down toward the December deadline, the road to approving the budget promises to be a spectacle of high-stakes negotiations laden with political implications.<\/span><\/p>\n

Edited by Alannah Hill<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Domestic Politics<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

In a move reflective of his administration\u2019s conservative leanings, South Korean President Yoon Suk-yeol unveiled a budget for 2024 on Tuesday that called for the smallest annual hike in spending in nearly two decades. 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