Lee Jae-myung: "Moon Jae-in Government's Income-Led Growth is Modern New Deal, Strongly Supported"

As President Moon Jae-in expressed unwavering determination to pursue income-led growth, Gyeonggi Province Governor Lee Jae-myung voiced strong support for the policy.

On the 28th, Governor Lee Jae-myung posted on his social media account with the message "The Moon Jae-in government's income-led growth policy must not be abandoned," stating that "the Moon Jae-in government's income-led growth policy is an essential modern New Deal for South Korea facing extreme inequality and polarization, low growth and economic stagnation," and added "I strongly support efforts to implement the income-led growth policy and will protect it together with the people of Gyeonggi Province."

President Moon Jae-in earlier stated at a cabinet meeting held on the morning of the 28th, "Income-led growth is about not just the wealthy living well but about growing together, making sustainable growth possible," emphasizing the policy.

Governor Lee noted that Roosevelt's New Deal policy and the Moon Jae-in government's income-led growth policy share common ground in economic structural innovation, and stated that such policies are essential for today's South Korea facing extreme inequality and polarization, low growth and economic stagnation.

The governor explained, "The core of the New Deal is recovery of fair competition order, wage increases through labor rights strengthening and middle class development, and implementation of job creation and welfare policies through tax increases. As the income of all citizens, including workers, increases, consumption grows, leading to more vigorous business activities and increased jobs, tax revenues, and welfare in a virtuous cycle."

He further argued that "income-led growth is a modern New Deal policy necessary in today's world where a small number of large conglomerates monopolize excessive profits, capital concentration, and exploitation and plunder have become everyday occurrences in the name of freedom and competition."

Regarding critical voices about income-led growth, he said "it was an innovative policy completely different from the free market economy that symbolized America, and though there was strong resistance from vested interests, it ultimately became the foundation for 50 years of American prosperity," and emphasized "we must absolutely block attacks from forces attempting to wreck the Moon Jae-in government's income-led growth policy and vested interests seeking to return to power through economic failure."

Additionally, he responded, "The New Deal policy was pursued over 7 years, but income-led growth is just beginning. Now is not the time to hastily evaluate, criticize, and abandon it, but rather to build a stronger foundation," he said.

Meanwhile, Gyeonggi Province Governor Lee Jae-myung announced on the 27th an ordinance regarding "Gyeonggi Province Youth Dividend Payment" and plans to implement the policy starting next year.

The Gyeonggi Province Youth Dividend is a type of Gyeonggi Province-style income-led growth policy that provides basic income to all young people to improve youth welfare and create a stable living foundation.

Gyeonggi Province anticipates that if the youth dividend is implemented for 24-year-old youth starting next year, approximately 680,000 young people will benefit from approximately 68 billion won over four years through 2022.

Additionally, the province is accelerating income-led growth initiatives by reflecting the establishment of the Gyeonggi Province Basic Income Committee in this year's first supplementary budget. The Basic Income Committee is the organization responsible for the "Youth Dividend," handling all tasks including establishing basic policy directions and comprehensive plans.

A Gyeonggi Province official stated, "Income-led growth and inclusive growth are important policy directions for the 7th civilian-elected administration of Gyeonggi Province," and added "Governor Lee's persistent incorporation of local currency into welfare expenditures is part of income-led growth and inclusive growth policies to strengthen welfare while raising household income and ensure that capital necessarily circulates to traditional markets and alleyway commercial areas."