Finance Minister Hong Nam-ki speaks during an interview with The Korea Times at the government complex in central Seoul, Jan. 10. / Korea Times photo by Shim Hyun-chul



Gov't to revisit financial hub vision amid HK unrest



By Kim Jae-kyoung, Lee Kyung-min



With the Moon Jae-in administration rolling out a series of measures focusing on redistribution over growth, there has been growing concern here and abroad that "socialism" is permeating into the capitalist South Korea.



Many foreign experts, in particular, have criticized Seoul government for tipping the balance of economic policies toward socialism, which they claim violate free market principles and will eventually lead to an exodus of foreign capital.



The nation's top economic policymaker, however, strongly refutes this criticism describing the Moon administration's income-led growth policies as an inevitable choice to tackle the ever-deepening issue of polarization and to ensure sustainable growth.



"I would disagree with such an argument," said Finance Minister Hong Nam-ki in an exclusive interview with The Korea Times at the government complex in central Seoul, Jan. 10.



"I believe they have gone too far. In an era of per-capita income of $30,000, it will be difficult for Asia's fourth-largest economy to move forward without addressing such issues as polarization and the fair distribution of wealth," he added.



He explained that income-led growth strategies should be taken as a process to find a new, sustainable growth model for the upcoming decades escaping from the old model that has underpinned Korea's explosive growth over the past 40 to 50 years since the 1960s.



In this regard, Hong, who concurrently serves as deputy prime minister, reiterated that the government will push for income-led growth policies, making minor modifications only when necessary.



"I don't think it is a proper explanation that our policy priority is skewed toward wealth redistribution over growth. The key growth engine for the Korean economy is now innovation and inclusiveness,'" he said.



This means that the government is pursuing a two-pronged strategy ― on one hand, boosting growth potential through innovation, and on the other hand, narrowing economic inequalities by enhancing social safety nets for the underprivileged.



"Growth potential-bolstering, long-term measures will be introduced to facilitate innovation and structural reform in the industrial and public sectors," he said.



"This, together with plans to help induce corporate investment and strong domestic consumption, will lay a firm groundwork for the country to sustain robust growth in the long term," he added.





Finance Minister Hong Nam-ki speaks during an interview with The Korea Times at the government complex in central Seoul, Jan. 10. / Korea Times photo by Shim Hyun-chul