Opposition whip presses Lee for 'new start' in economy

By Shin Hae-in

SEOUL, Oct. 29 (Yonhap) -- Calling President Lee Myung-bak "arrogant and irresponsible," the opposition party leader on Wednesday demanded a complete makeover of government-led economic drives to overcome the country's escalating financial woes.

The attack comes as the conservative Lee administration attempts to soothe
concerns over the ongoing instability in local stock and currency markets
triggered by the U.S.-sparked global credit crunch. Experts, however, are warning
of an impending dire situation similar to that of the 1997-98 financial meltdown.

Opposition parties, as well as a majority of voters here, remain skeptical of the
economic measures put forward by Lee and his party, which they say are off-target
and may serve to further widen the nation's already sizable income gap.
"We ask President Lee on behalf of those who have lost jobs, closed down
businesses, are losing hope or have been overtaken by fear and despair -- shake
off your arrogance and start over right now," said Chung Sye-kyun, leader of the
main opposition Democratic Party (DP) in a speech at the National Assembly.
"We do not want a president who blames others for the countless difficulties that
lay ahead of us. We did not vote for a president who sides with the rich and the
privileged, while forcing ordinary citizens to make sacrifices."
President Lee, a former CEO who won the December election in a landslide on the
back of his flagship pledge to reinvigorate the faltering economy, continues to
suffer from low approval ratings hovering in the 20 percent range. Opposition
parties led by the DP have been demanding that Lee replace his top economic
policymakers, claiming they are incapable of solving the growing financial
difficulties.
Criticizing Lee's proposed tax cuts, his plans for deregulation, an increased
budget and the privatization of public firms, the opposition leader demanded new
measures focused on the middle class and the underprivileged.
The money now going to the wealthy should instead be spent on creating more jobs,
supporting small- and mid-tier companies and temporary workers, he said.
"It is now being proven that U.S.-style free market capitalism has many errors,"
Chung said. "When is our president going to come to his senses and make the
inevitable changes in his economic principles and views?"
"Mr. President, you are wrong. Cutting taxes will not lead to a boost in
investment and consumption. It will only further deprive the hopes of ordinary
citizens."
The Lee government announced far-reaching tax reforms in September which include
income and corporate tax cuts anticipated to save taxpayers an estimated 11.7
trillion won (US$84 billion) by the end of next year.
It also plans to ease the tax burden on high-end homeowners, benefiting those
with houses valued over $600,000 and a move even Lee's own party is hesitant to
support.
"Increasing next year's spending while cutting taxes is a dangerous plan," Chung
added. "We demand the government revise the budget immediately. It is not the
parliament's job to fix the blunders made by the government."
Chung also called on Lee to strive harder in thawing frozen relations with
Pyongyang by resuming dialogue on a government basis, implementing the two
inter-Korean deals struck under Lee's predecessors and promptly sending stalled
food aid to the impoverished state.
The relationship between the communist North and Seoul's conservative,
pro-Washington Lee government has been strained since Lee took office in
February. Taking a harder line than his liberal predecessors, Lee has been firm
on linking aid and economic assistance to the North with progress in its
denuclearization process.