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The Intellectuals’ Declaration Network held a press conference calling for the Moon administration to be more aggressive in implementing social and economic reforms on July 18 at the Giraffe Castle public space in Seoul’s Mapo District.
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Public statement cautions against “a return to the past”
A statement issued by South Korean intellectuals on July 18 expresses concern about the Moon Jae-in administration “abandoning” social and economic reforms and urges it to adopt aggressive reform policies. The Intellectuals’ Declaration Network held a press conference that morning at the Giraffe Castle public space on the Gyeongui railway line in Seoul’s Mapo district to issue the document, titled “Intellectuals’ Statement to Urge Bold Social and Economic Reforms from the Moon Jae-in Administration.” “After taking office with calls for ‘equal opportunities, fair processes, and just results,’ the Moon Jae-in administration has recently been abandoning its social and economic reforms and exhibiting a return to the past,” the network’s members said. “The failure of social and economic reforms is very likely to alienate the public and sap the momentum for reforms, which will likely lead to failure for the Moon administration,” they predicted. The network called for an approach including bold policies for income-driven growth, innovation growth, and a fair economy; eradication of deep-rooted vices with the chaebol system and mandatory hiring of regular workers; the immediate abolition of regressive change to the comprehensive real estate tax; and the replacement of administration officials responsible for anti-reform trends. This marks the first time since Moon took office that progressive intellectuals have expressed a collective opinion on the administration’s policy course. Thirty-two figures took part in organizing the statement, including Kangwon National University emeritus professor Lee Byeong-cheon, Sungkyunkwan University emeritus professor Kim Tae-dong, and Catholic University of Daegu professor Chon Kang-soo; the total number of signatories was 323, including other professors, and civic group members. “We hope for the Moon Jae-in administration’s success and have been understanding about some serious mistakes in the past, but we decided to issue this statement calling on the ‘candlelight government’ to fulfill its responsibility after determining that the Moon Jae-in administration is now at an important crossroads,” they explained. According to the network, the initial number of signatories was expected to be “no more than around fifty.” “Ultimately, over 300 intellectuals signed their names,” it said. Moon administration at “tremendously important crossroads Lee Byeong-cheon, one of the driving forces behind the statement, said, “We are not completely parting ways with the administration through this declaration, but it’s not simply ‘advice’ either.” “The administration is at a tremendously important crossroads, and the word ‘unprecedented’ seems inadequate to describe what we are saying now,” he continued. “I want to emphasize that there are some very strong criticisms and demands.” To begin with, the intellectuals’ declaration includes stern critiques of the controversy surrounding the minimum wage increase, as well as “steps backward” in revisions to the real estate tax system and chaebol reform. “We held great hopes for the Moon Jae-in administration when it presented its economic policy focus of a ‘three-wheeled economy’ including income-driven growth, innovation growth, and a fair economy, pursuing an increase in the minimum wage as a first step toward that,” the network said. Missed opportunity to get “three-wheel economy” on track “Yet when presented with a perfect opportunity to get the ‘three-wheel economy’ on track by clearing away old chaebol vices and establishing economic democracy, the administration’s dawdling resulted in the minimum wage hike being portrayed as the ‘culprit’ behind declining performance for small business owners and the disappearance of jobs, with an emphasis on the resulting conflict among the economically vulnerable,” it added. The network also noted that while a special financial reform committee was set up under the President Commission on Policy Planning in April to address revisions to the property tax system, the final recommendation it announced “amounted to a tax hike in dribs and drabs, with a tax revenue effect of just 1.1 trillion won (US$973 million).” “Even that recommendation was not accepted by the Ministry of Strategy and Finance, which announced a government revision plan with tax revenue effects of just around 740 billion won (US$654 million),” it continued. “No one would predict such a plan could lead to the prevention of unearned real estate income.” The network stressed that “the most powerful and suitable policy means to put an end to the ‘real estate republic’ is to prevent unearned income through a stronger real estate property tax.” The network was also critical of the lack of progress in chaebol reform. Half-hearted approach to chaebol reform “The disappointment felt by the South Korean public after watching President Moon Jae-in meeting with Samsung Electronics vice chairman Lee Jae-yong and pleading for jobs while he was on trial over the government influence-peddling scandal was indescribable,” the network said. “Similar examples include the deeply controversial issue of ‘window-dressing accounting’ by Samsung Biologics after the decision by the Securities and Futures Commission to ‘go easy’ on Samsung, or the intense battle between Financial Services Commission offices and reformist National Assembly members that has continued since last year over the taxation of Samsung chairman Lee Kun-hee’s borrowed-name assets,” it added. The network went on to say the administration’s “half-hearted approach to chaebol reform” had “in some ways offered a pretext for the judiciary’s overt actions to protect chaebol vices.” The participating professors continued their denunciations in a Q&A session following the statement’s announcement. “The Moon Jae-in administration may have concluded that the Roh Moo-hyun administration failed because it listened to the opinions of civil society,” said Chon Kang-soo. “I wouldn’t go so far as to call the current administration ‘uncommunicative,’ but it does seem to be adopting a ‘my way’ approach,” he added. Hongik University professor Jun Sung-in said the administration had “fallen prey to sweet talk from officials and started on the drug of pleading for short-term, immediate effects and employment from the chaebol.” “Why wouldn’t we tell [the Blue House] to handle the Samsung issue properly or do things right on the real estate property tax and minimum wage issues?” he asked. “[The Blue House] doesn’t place any real meaning on what we say except when it’s claiming that it has ‘listened to civic groups.’” By Choi Hyun-june, staff reporter Please direct comments or questions to [english@hani.co.kr]
