Inexperienced and rigid policy implementation is thwarting South Korean President Moon Jae-in’s pursuit of reform.
Author: Sang-young Rhyu, Yonsei University
It is approaching two years since South Korean President Moon Jae-in took office. During this period, Moon’s democratic leadership style and spirit of service have lifted public morale and salved past wounds. His efforts to improve inter-Korean relations and promote peace on the Korean Peninsula are enthusiastically welcomed. Institutional reforms are also being steadily promulgated to enhance the transparency and accountability of large conglomerates. Despite this progress, the harsh realities of South Korean society remain and are materialising into prodigious challenges to Moon’s leadership.
Negative economic indicators are jeopardising the President’s leadership. The number of newly hired workers in July 2018 was only 5000 — flat from the number a year ago and the lowest on record for the last eight years and six months. For the seventh consecutive month, the number of unemployed individuals exceeded 1 million.
The shock of unemployment is connected to worsening trends in income distribution. As of the second quarter of 2018, income for the top 20 per cent of households increased by 10.3 per cent compared to the previous quarter, while income for the bottom 20 per cent decreased by 7.6 per cent. Likewise, the number of jobs increased for the upper income bracket but decreased sharply for the lower income bracket. Both the Gini coefficient and the relative poverty rate rose, as did the unemployment rate for young adults aged 25–34, which hit 6.4 per cent — the highest since 1999.
What caused this situation?
Moon’s first scheduled visit after being sworn in was to Incheon International Airport — a state-owned corporation — in May 2017, where he promised to regularise 10,000 temporary employees and declared the end of irregular employment in the public sector. The President, who responded to the grievous situation faced by irregular workers by championing the philosophy of the ’people first’, was warmly received by citizens and workers alike.
