World Economy

S. Korea Sticks to Income-Led Growth Policy

S. Korea Sticks to Income-Led Growth PolicyS. Korea Sticks to Income-Led Growth Policy

President Moon Jae-in’s chief policy adviser reaffirmed his commitment to the administration’s “income-led growth” policy on Sunday, shrugging off growing criticism fanned by recent grim jobs data, Yonhap reported. “The recent employment and household income data does not encourage (me) to give up the income-led growth policy. Rather, they emphasize the need to speed up the economic initiative,” Jang Ha-sung, presidential chief of staff for policy, said in a meeting with reporters. “We will more boldly push economic policies for income-led growth, innovation-driven growth and a fair economy in the latter half of this year.” The Moon administration is pushing an income-driven policy to create a virtuous cycle of increasing household income and spending as well as an expansionary fiscal policy to buttress it. The labor-friendly policy, however, has faced backlash as opponents have argued that a sharp hike in the minimum wages has made businesses avoid hiring over increased labor costs, citing the nation’s job growth falling to the lowest level in more than eight years in July.

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