{"id":2207654,"date":"2024-12-25T17:28:58","date_gmt":"2024-12-25T08:28:58","guid":{"rendered":"https:\/\/koreapro.org\/?p=2207654"},"modified":"2024-12-26T13:43:34","modified_gmt":"2024-12-26T04:43:34","slug":"how-a-democratic-party-president-could-reshape-south-koreas-economy","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/12\/how-a-democratic-party-president-could-reshape-south-koreas-economy\/","title":{"rendered":"How a Democratic Party president could reshape South Korea\u2019s economy"},"content":{"rendered":"<p><i><span style=\"font-weight: 400;\">Editor\u2019s note: This is the third in a multi-part series exploring South Korean policy changes that could emerge under a Democratic Party president.<\/span><\/i><i><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Part one on foreign and trade policies can be read <\/span><\/i><a href=\"https:\/\/koreapro.org\/2024\/12\/how-a-democratic-party-presidency-could-reshape-south-koreas-foreign-policies\/\"><i><span style=\"font-weight: 400;\">here<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Part two on nuclear weapons policy can be read <\/span><\/i><a href=\"https:\/\/koreapro.org\/2024\/12\/why-a-democratic-party-led-south-korea-will-reject-nuclear-weapons\/\"><i><span style=\"font-weight: 400;\">here<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.<\/span><\/i><\/li>\n<\/ul>\n<hr \/>\n<p><span style=\"font-weight: 400;\">South Korea\u2019s economic future faces growing uncertainty, shaped by global protectionism, environmental, social and governance (ESG) demands and its aging population. The main opposition Democratic Party (DP), now poised to reclaim the presidency after President Yoon Suk-yeol\u2019s impeachment, is expected to recalibrate the country\u2019s fiscal and industrial strategies to tackle these challenges.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Korea Pro<\/span><\/i><span style=\"font-weight: 400;\"> analysis suggests that a DP-led government will prioritize equity-driven economic policies, including progressive taxation, cash vouchers for consumption stimulus and targeted labor reforms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time, the party is likely to double down on green technology, small and medium-sized enterprise (SME) support and welfare programs while addressing systemic challenges such as labor market disparities and the aging workforce.<\/span><\/p>\n<p><b>FISCAL POLICY: STIMULUS, SPENDING AND FRONT-LOADING<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The DP\u2019s fiscal strategy has long centered on <\/span><a href=\"https:\/\/www.kocis.go.kr\/eng\/webzine\/201810\/sub10.html\"><span style=\"font-weight: 400;\">expansionary policies<\/span><\/a><span style=\"font-weight: 400;\"> to address inequality and stimulate growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The 2025 budget, <\/span><a href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/south-korea-opposition-party-plans-pass-government-budget-bill-tuesday-2024-12-10\/\"><span style=\"font-weight: 400;\">passed unilaterally<\/span><\/a><span style=\"font-weight: 400;\"> by the DP-majority National Assembly on Dec. 10, reduced the government\u2019s original proposal by $2.8 billion (4.1 trillion won). These cuts primarily targeted special activity funds allocated to law enforcement and prosecution agencies, as well as the presidential office.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The reductions were widely viewed as a retaliatory move by the DP, frustrated by Yoon\u2019s <\/span><a href=\"https:\/\/koreapro.org\/2024\/12\/south-koreas-chaotic-2024-impeachment-martial-law-and-political-upheaval\/\"><span style=\"font-weight: 400;\">repeated vetoes<\/span><\/a><span style=\"font-weight: 400;\"> of its legislative proposals and the prosecution\u2019s decision <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20241002005700315\"><span style=\"font-weight: 400;\">not to charge<\/span><\/a><span style=\"font-weight: 400;\"> the first lady over her <\/span><a href=\"https:\/\/koreapro.org\/2024\/08\/why-south-korea-is-reviving-the-first-ladys-office-after-proudly-abolishing-it\/\"><span style=\"font-weight: 400;\">luxury bag scandal<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Acting President Han Duck-soo\u2019s decision last week to <\/span><a href=\"https:\/\/koreapro.org\/2024\/12\/han-duck-soo-pushes-for-swift-2025-budget-execution-amid-fiscal-uncertainty\/\"><span style=\"font-weight: 400;\">front-load the budget<\/span><\/a><span style=\"font-weight: 400;\"> into the first half of 2025 highlights the urgency with which the government seeks to stabilize domestic consumption and mitigate potential financial volatility.<\/span><\/p>\n<div id=\"attachment_2207656\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2207656\" class=\"size-full wp-image-2207656\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/1-14.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/1-14.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/1-14-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/1-14-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2207656\" class=\"wp-caption-text\"><em>South Korean first lady Kim Keon-hee meets with Dutch King Willem-Alexander in the Netherlands, Dec. 12, 2023 | Image: <a href=\"https:\/\/www.president.go.kr\/newsroom\/photo_news\/PdCSculg\">ROK Presidential Office<\/a><\/em><\/p><\/div>\n<p><span style=\"font-weight: 400;\">However, while concentrating fiscal stimulus in the first half allows the government to address immediate economic challenges, it leaves limited resources for the second half of the year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the DP officially assumes power, it will face the challenge of managing an already front-loaded budget. To sustain its agenda, the party will likely push for a supplementary budget in the second half to fund welfare expansion, infrastructure projects and public sector employment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Welfare programs, such as housing subsidies, child care and senior support initiatives, are expected to remain central to the DP\u2019s strategy for addressing inequality and boosting domestic demand. Infrastructure investments, particularly in green technology and urban redevelopment, are expected to align with the DP\u2019s broader ESG commitments while creating jobs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">South Korea\u2019s national debt-to-GDP ratio, estimated at <\/span><a href=\"https:\/\/korea.kr\/news\/policyNewsView.do?newsId=148929975\"><span style=\"font-weight: 400;\">47%<\/span><\/a><span style=\"font-weight: 400;\"> in June, remains low compared to most advanced economies, reflecting its strong fiscal fundamentals. Credit rating agencies like Moody\u2019s, Fitch and S&amp;P continue to rate South Korea\u2019s economy as stable, citing its diversified industrial base and prudent fiscal management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">South Korea\u2019s fiscal space provides room for a DP-led government to implement its policy goals without immediately risking investor confidence or credit downgrades. However, the government will likely seek to manage the perception of rising debt levels as public spending will likely increase to support its welfare expansion and green initiatives.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For businesses and investors, a DP-led government\u2019s fiscal strategy will likely present opportunities in sectors aligned with its priorities, such as renewable energy, construction and social services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, some sectors benefiting from the Yoon administration\u2019s deregulation efforts, such as <\/span><a href=\"https:\/\/koreapro.org\/2022\/06\/abandoning-phaseout-south-korea-moves-to-get-nuclear-exports-back-on-track\/\"><span style=\"font-weight: 400;\">nuclear energy<\/span><\/a><span style=\"font-weight: 400;\"> and fossil fuel exploration projects like the <\/span><a href=\"https:\/\/koreapro.org\/2024\/06\/yoons-oil-and-gas-announcement-sparks-hope-and-skepticism-in-south-korea\/\"><span style=\"font-weight: 400;\">Blue Whale offshore gas initiative<\/span><\/a><span style=\"font-weight: 400;\">, will likely face policy reversals under a DP-led government.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, while the finance sector has seen some regulatory easing, it is unlikely that the DP will aggressively move to reverse these changes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Notably, DP leader Lee Jae-myung <\/span><a href=\"https:\/\/koreapro.org\/2024\/11\/south-korea-shelves-expansion-of-capital-gains-tax-boosting-market-liquidity\/\"><span style=\"font-weight: 400;\">announced<\/span><\/a><span style=\"font-weight: 400;\"> in November his support for the repeal of South Korea\u2019s Financial Investment Income Tax, which aligned the opposition party with the government\u2019s <\/span><a href=\"https:\/\/koreapro.org\/2024\/05\/yoons-press-conference-apologetic-tone-unchanged-stance-on-key-issues\/\"><span style=\"font-weight: 400;\">push to shelve the tax<\/span><\/a><span style=\"font-weight: 400;\"> just two months before it was set to take effect.<\/span><\/p>\n<div id=\"attachment_2207657\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2207657\" class=\"size-full wp-image-2207657\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/2-13.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/2-13.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/2-13-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/2-13-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2207657\" class=\"wp-caption-text\"><em>South Korean President Yoon Suk-yeol holds a briefing about potential oil and gas reserves in the East Sea, June 3, 2024 | Image: <a href=\"https:\/\/www.president.go.kr\/newsroom\/photo_news\/B16PVs4h\">ROK Presidential Office<\/a><\/em><\/p><\/div>\n<p><b>TAX POLICY: BALANCING GROWTH AND EQUITY<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Tax policy under a DP administration is expected to prioritize equity and social welfare over aggressive corporate incentives. The party has consistently emphasized <\/span><a href=\"https:\/\/koreapro.org\/2024\/08\/lee-jae-myungs-re-election-intensifies-risks-for-businesses-in-south-korea\/\"><span style=\"font-weight: 400;\">progressive taxation<\/span><\/a><span style=\"font-weight: 400;\">, with a focus on redistributing wealth through higher taxes on high-income earners and property owners while maintaining cautious support for businesses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The DP\u2019s approach to supporting SMEs contrasts with its reluctance to embrace sweeping corporate tax cuts for large conglomerates. Building on <\/span><a href=\"https:\/\/koreapro.org\/2024\/02\/south-korea-extends-grace-period-for-smes-to-delay-taxation-as-larger-firms\/\"><span style=\"font-weight: 400;\">existing SME support measures<\/span><\/a><span style=\"font-weight: 400;\">, the DP is likely to continue prioritizing initiatives like extended loan repayment periods, expanded financial aid and increased subsidies for electricity costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, the government\u2019s <\/span><a href=\"https:\/\/koreapro.org\/2024\/07\/south-korea-announces-comprehensive-aid-plan-for-small-businesses\/\"><span style=\"font-weight: 400;\">New Start Fund<\/span><\/a><span style=\"font-weight: 400;\">, currently valued at over $27.4 billion (40 trillion won), provides significant financial relief to struggling small business owners. A DP-led government could aim to expand this program further, focusing on entrepreneurs and small enterprises seeking to scale operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Notably, the DP has demonstrated pragmatism in adapting to emerging economic trends. For instance, the party agreed earlier this month to <\/span><a href=\"https:\/\/www.chosun.com\/politics\/assembly\/2024\/12\/02\/KH3W3EDKBZHUZGNDPF4VVD5DW4\/\"><span style=\"font-weight: 400;\">delay imposing a tax<\/span><\/a><span style=\"font-weight: 400;\"> on virtual asset investments until 2027. Initially set to be put in motion next year, the government would have imposed a 22% tax on annual income exceeding $1,700 (2.5 million won) from virtual asset investments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Its decision to delay virtual asset investment taxation by two years reflects a strategic effort to foster growth in fintech and blockchain sectors while regulators establish a more comprehensive framework. Regardless of motivation, the DP\u2019s move signaled its intent to attract investment and solidify South Korea\u2019s position as a global hub for innovative technologies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For stakeholders, the DP\u2019s tax policies will likely present opportunities in sectors, such as green technology, fintech and small business development. However, larger corporations may face <\/span><a href=\"https:\/\/koreapro.org\/2023\/01\/yoons-tax-cut-plans-for-semiconductor-industry-set-up-clash-with-opposition\/\"><span style=\"font-weight: 400;\">increased scrutiny<\/span><\/a><span style=\"font-weight: 400;\"> as the DP seeks to fund its expansive welfare and public investment programs.<\/span><\/p>\n<div id=\"attachment_2207658\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2207658\" class=\"size-full wp-image-2207658\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/3-6.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/3-6.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/3-6-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/3-6-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2207658\" class=\"wp-caption-text\"><em>South Korean President Yoon Suk-yeol meets with DP leader Lee Jae-myung for their first formal meeting since the former&#8217;s inauguration in 2022, April 29, 2024 | Image: <a href=\"https:\/\/www.president.go.kr\/newsroom\/photo_news\/SqK9wTW6\">ROK Presidential Office<\/a><\/em><\/p><\/div>\n<p><b>CASH VOUCHERS VS. BASIC INCOME<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The debate between cash vouchers and Universal Basic Income (UBI) has been central to Lee Jae-myung\u2019s economic philosophy. While Lee <\/span><a href=\"https:\/\/english.hani.co.kr\/arti\/english_edition\/e_national\/795530.html\"><span style=\"font-weight: 400;\">previously championed<\/span><\/a><span style=\"font-weight: 400;\"> UBI as a transformative policy during his tenure as mayor of Seongnam City, funding challenges has forced him to <\/span><a href=\"https:\/\/koreajoongangdaily.joins.com\/2022\/01\/04\/national\/politics\/Lee-Jaemyung-election-candidate\/20220104181350476.html\"><span style=\"font-weight: 400;\">veer away<\/span><\/a><span style=\"font-weight: 400;\"> from that position to favor cash vouchers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, when Yoon and Lee <\/span><a href=\"https:\/\/koreapro.org\/category\/south-korea-news-podcast\/latest\/optics-and-outmaneuvering-yoon-and-lee-sit-down-for-the-first-time-ep-17\/2204934\/\"><span style=\"font-weight: 400;\">met<\/span><\/a><span style=\"font-weight: 400;\"> shortly after <\/span><a href=\"https:\/\/koreapro.org\/2024\/04\/south-koreas-opposition-triumphs-in-general-elections-dealing-blow-to-yoon\/\"><span style=\"font-weight: 400;\">April\u2019s parliamentary election<\/span><\/a><span style=\"font-weight: 400;\">, which cemented the DP\u2019s majority status in the National Assembly, Lee <\/span><a href=\"https:\/\/koreapro.org\/2024\/04\/why-universal-cash-handouts-would-have-unintended-consequences-for-south-korea\/\"><span style=\"font-weight: 400;\">proposed<\/span><\/a><span style=\"font-weight: 400;\"> a one-time cash voucher of $170 (250,000 won) to every citizen, which he estimated would cost the government about $8.9 billion (13 trillion won).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, that proposal did not come into fruition, which Yoon warned would lead to inflationary pressures. However, a DP-led government will likely revisit this issue, presenting it as a measure to boost domestic consumption.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While it remains to be seen whether such measures will lead to the consumption of goods beyond perishables, the argument will likely gain traction with voters. Persistently <\/span><a href=\"https:\/\/koreapro.org\/2024\/11\/economic-slowdown-drives-bank-of-korea-to-surprise-second-rate-cut\/\"><span style=\"font-weight: 400;\">weak domestic demand<\/span><\/a><span style=\"font-weight: 400;\"> has forced the Bank of Korea to <\/span><a href=\"https:\/\/koreapro.org\/2024\/12\/liquidity-and-reforms-lead-south-koreas-response-to-financial-jitters\/\"><span style=\"font-weight: 400;\">slash growth forecasts<\/span><\/a><span style=\"font-weight: 400;\"> for next year despite the country\u2019s <\/span><a href=\"https:\/\/koreapro.org\/2024\/11\/south-koreas-exports-hit-all-time-high-as-external-challenges-intensify\/\"><span style=\"font-weight: 400;\">robust export figures<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A DP-led government will likely argue that cash vouchers will stimulate the economy without overburdening public finances, making them an attractive option for short-term economic stimulus.<\/span><\/p>\n<div id=\"attachment_2207659\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2207659\" class=\"size-full wp-image-2207659\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/4-4.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/4-4.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/4-4-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/12\/4-4-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2207659\" class=\"wp-caption-text\"><em>DP leader Lee Jae-myung meets with small business owners and the self-employed, Oct. 30, 2024 | Image: <a href=\"https:\/\/theminjoo.kr\/main\/sub\/contents\/gallery-photo.php?sno=76&amp;brd=14&amp;post=1207528\">Democratic Party of Korea<\/a><\/em><\/p><\/div>\n<p><b>LABOR REFORMS: STRENGTHENING WORKER PROTECTIONS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Labor reforms are poised to be a cornerstone of the DP\u2019s economic strategy, emphasizing equity, job security and enhanced protections for vulnerable workers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A DP-led government is expected to uphold the <\/span><a href=\"https:\/\/www.kocis.go.kr\/eng\/webzine\/201809\/sub10.html\"><span style=\"font-weight: 400;\">52-hour maximum workweek<\/span><\/a><span style=\"font-weight: 400;\"> established under Moon Jae-in\u2019s administration, rejecting the Yoon administration\u2019s proposals for <\/span><a href=\"https:\/\/koreapro.org\/2024\/09\/yoon-administration-backs-flexible-labor-to-boost-economic-growth\/\"><span style=\"font-weight: 400;\">increased labor flexibility<\/span><\/a><span style=\"font-weight: 400;\">. This stance reflects the party\u2019s broader commitment to safeguarding worker rights in an increasingly competitive and technologically driven economy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Addressing the disparity between regular and irregular workers is likely to be another key focus area. Statistics Korea revealed in October that irregular positions \u2014 jobs that are not permanent or offer full-time employment status \u2014 account for <\/span><a href=\"https:\/\/kostat.go.kr\/board.es?mid=a10301010000&amp;bid=210&amp;act=view&amp;list_no=433307&amp;tag=&amp;nPage=7&amp;ref_bid=203,204,205,206,207,210,211,11109,11113,11814,213,215,214,11860,11695,216,218,219,220,10820,11815,11895,11816,208,245,222,223,225,226,227,228,229,230,11321,232,233,234,12029,10920,11469,11470,11817,236,237,11471,238,240,241,11865,243,244,11893,11898,12031,11825,246,0067&amp;keyField=T&amp;keyWord=&amp;bodo_b_type=all\"><span style=\"font-weight: 400;\">more than 38%<\/span><\/a><span style=\"font-weight: 400;\"> of South Korea\u2019s workforce, and the DP has long criticized this imbalance as a driver of inequality.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A DP-led government will likely prioritize converting irregular roles into regular jobs, particularly within the public sector. To address irregular roles in the private sector, a DP-led government could leverage the <\/span><a href=\"https:\/\/koreapro.org\/2024\/01\/yoon-suk-yeol-pushes-for-delay-in-industrial-safety-law-amid-sme-struggles\/\"><span style=\"font-weight: 400;\">Serious Accident Punishment Act<\/span><\/a><span style=\"font-weight: 400;\"> (SAPA).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By holding primary contractors accountable for serious workplace accidents involving subcontractors, SAPA incentivizes companies to reduce their reliance on outsourced and irregular positions. As a result, private sector firms could prioritize hiring regular employees to retain greater control over safety compliance and reduce liability risks associated with subcontracting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, the DP may introduce targeted incentives, such as subsidies or tax benefits, to encourage private companies to improve job stability and reduce reliance on temporary employment arrangements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, the DP\u2019s approach to the minimum wage will likely emphasize steady and predictable increases. This will be in stark contrast to the Yoon administration\u2019s approach to minimum wage negotiations, which often resulted in <\/span><a href=\"https:\/\/koreapro.org\/2023\/07\/south-koreas-labor-management-sectors-clash-over-2024-minimum-wage\/\"><span style=\"font-weight: 400;\">walk-outs and negotiation breakdowns<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the previous Moon administration\u2019s <\/span><a href=\"https:\/\/www.kdi.re.kr\/eng\/share\/conferInfo?sm_no=434\"><span style=\"font-weight: 400;\">income-led growth agenda<\/span><\/a><span style=\"font-weight: 400;\"> led to mixed results, a DP-led government will likely revive those policies, aiming to reduce wage gaps and increase job security.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, a DP-led government will likely face significant resistance from business groups, particularly small and medium-sized enterprises, which will likely argue that such measures would hinder their ability to remain competitive vis-a-vis large corporations.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Edited by Alannah Hill<\/span><\/i><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/domestic-politics\/\"><span class=\"tag\">Domestic Politics<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Editor\u2019s note: This is the third in a multi-part series exploring South Korean policy changes that could emerge under a Democratic Party president. Part one on foreign and trade policies can be read here. Part two on nuclear weapons policy can be read here. South Korea\u2019s economic future faces growing uncertainty, shaped by global protectionism, [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2207655,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,27],"class_list":["post-2207654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-domestic-politics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How a Democratic Party president could reshape South Korea\u2019s economy - Korea Pro<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/12\/how-a-democratic-party-president-could-reshape-south-koreas-economy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How a Democratic Party president could reshape South Korea\u2019s economy - Korea Pro\" \/>\n<meta property=\"og:description\" content=\"Editor\u2019s note: This is the third in a multi-part series exploring South Korean policy changes that could emerge under a Democratic Party president. 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