Cho Kuk, head of the Rebuilding Korea Party's Innovation Policy Institute, urged the Democratic Party of Korea to focus on delivering results for people's livelihoods while accepting internal differences within its camp. He warned that the governing camp could face a public reckoning if it becomes consumed by factional and generational framing instead of livelihood issues.
Writing on social media on Sept. 30, Cho said, "If the governing camp does not focus on people's livelihoods and instead remains trapped in, or fosters, frames such as 'new' versus 'old' or 'pro-Lee' versus 'anti-Lee,' the sovereign people will pick up the rod."
He noted that money raised by selling stocks and bonds and spent on buying homes exceeded 8 trillion won from January to July this year, already far surpassing the 5.8 trillion won recorded for all of last year. "At this pace, the year-end figure will be more than double last year's," he said. "'Other loans,' which include loans secured by securities, also reached 1.5 trillion won. That amounts to 70% of last year's total."
"There is a clear flow of assets swollen by the AI and semiconductor boom moving back into housing," he said, adding that this has formed powerfully in the opposite direction from the "money move" the government had pledged.
"If this is left unchecked, I am concerned about a vicious cycle in which the fruits of growth accumulate among those who already hold assets and those assets buy still more assets — in other words, an 'inequality money move' that grows stronger," he said. "A 'mega project' in livelihood and welfare must be established as one pillar of state affairs as soon as possible."
Cho argued that it is not desirable to concentrate the sharp increase in tax revenue this year and next solely on the AI and semiconductor sectors. "The AI and semiconductor sectors are already receiving ample support through the National Growth Fund, general account spending and various tax breaks," he said.
"During a boom of historic scale, next year's government budget and the future response fund should be spent boldly on resolving polarization and inequality," he said. "A national declaration and its implementation to expand the share of high-quality public housing to 20% of all homes would also rein in the real estate money move. Concentrated investment in the livelihood and welfare of socioeconomically vulnerable groups, including poverty among young adults and older adults, is the surest and most powerful way to boost domestic demand."
