(2nd LD) Opposition chairman presses Lee for 'new start' in economy

(ATTN: RECASTS lead; REPHRASES para 2, 3; ADDS ruling party's reaction in last two
paras; TRIMS)
By Shin Hae-in
SEOUL, Oct. 29 (Yonhap) -- The chairman of the main opposition party on Wednesday
demanded a complete makeover of President Lee Myung-bak's economic drives,
claiming they have fallen short of overcoming the country's escalating financial
woes.
The demand comes as the conservative Lee administration attempts to soothe
concerns over the ongoing instability in local stock and currency markets
triggered by the mounting global credit crunch. Many experts, however, are
warning of an impending dire situation similar to that of the 1997-98 financial
meltdown.
Opposition parties have been demanding that Lee replace his top economic
policymakers, claiming they are incapable of solving the current difficulties.
"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 are 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.
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?"
"Cutting taxes will not lead to a boost in investment and consumption. It will
only further deprive ordinary citizens of their hope."
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 owners of high-end homes, benefiting
those with houses valued over $600,000 in 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."
The ruling Grand National Party "regretted" its rival's eagerness to hold
President Lee fully accountable for the economic crisis, adding it will make more
effort in seeking bipartisan cooperation.
"It is disappointing to see the opposition leader blaming the president for
everything instead of showing a positive attitude for the sake of the country and
its people," said its spokeswoman Cho Yoon-sun. "We however, highly view his
pledge to put together efforts in overcoming the crisis. We will do the same."
hayney@yna.co.kr
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