{"id":2207318,"date":"2024-11-29T16:48:14","date_gmt":"2024-11-29T07:48:14","guid":{"rendered":"https:\/\/koreapro.org\/?p=2207318"},"modified":"2024-11-29T16:48:14","modified_gmt":"2024-11-29T07:48:14","slug":"yoon-and-south-koreas-opposition-pivot-on-policy-eyeing-political-center","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/11\/yoon-and-south-koreas-opposition-pivot-on-policy-eyeing-political-center\/","title":{"rendered":"Yoon and South Korea\u2019s opposition pivot on policy, eyeing political center"},"content":{"rendered":"
South Korean politics is witnessing an unusual shift as President Yoon Suk-yeol and opposition leader Lee Jae-myung move away from traditional stances on policies relating to business and the economy.<\/span><\/p>\n Yoon, who focused on small government and fiscal conservatism during the first half of his term, is now advocating for expanded welfare spending to address \u201c<\/span>economic polarization<\/span><\/a>.\u201d And despite internal <\/span>pushback<\/span><\/a>, some in his office are apparently <\/span>discussing<\/span><\/a> supplementary budgets \u2014 a policy tool he once criticized his predecessor for overusing.<\/span><\/p>\n Meanwhile, Lee is increasingly <\/span>adopting<\/span><\/a> pro-business stances and supporting corporate-friendly policies that seem at odds with his previous stances. His top aides have also <\/span>referred<\/span><\/a> to him as \u201cpro-business\u201d in media interviews, an apparent attempt to promote a new image.\u00a0<\/span><\/p>\n This follows Lee’s series of meetings with business leaders where he endorsed corporate-friendly reforms such as separate taxation on dividends and repeatedly emphasized that “growth is the foundation of welfare.\u201d<\/span><\/p>\n The timing of these shifts reflects mounting political pressures on both leaders as South Korea faces immediate economic challenges and looming external risks.<\/span><\/p>\n THE THREAT<\/b><\/p>\n South Korea faces major external economic risks as a highly export-dependent country. The International Monetary Fund and Seoul\u2019s own institutions lowered its economic growth forecasts for 2025, and the urgency appears heightened by President-elect Donald Trump’s plans to impose aggressive tariffs upon taking office in January.\u00a0<\/span><\/p>\n This outlook has translated into concerns from not just businesses but also the general public, <\/span>contributing<\/span><\/a> to a recent downward spiral in consumer expectations for the economy in the new year.\u00a0<\/span><\/p>\n Just this week, the Bank of Korea made a surprise cut to the base rate, while lowering the GDP growth forecast to 1.9% for 2025, citing risks related to a protectionist U.S. administration\u2019s return and heightened global financial volatility.\u00a0<\/span><\/p>\n Although South Korea needs to improve policies on various social issues such as housing, education inequality and the low birth rate, the ruling People Power Party (PPP) continues to <\/span>emphasize<\/span><\/a> fiscal discipline.\u00a0<\/span><\/p>\n This is one of the many indicators of the <\/span>divergence<\/span><\/a> between the administration and ruling party, and of the conflict between Yoon and PPP leader Han Dong-hoon that has been escalating for months.<\/span><\/p>\n