People Power Party Policy Committee and Yeouido Institute Held a Grand Debate to Evaluate the Lee Jae-myung Administration's Failures in its Second Year

A drastic surge occurred in the monthly rent market after the implementation of the Lease Protection Act. The Lee Jae-myung administration recorded the highest monthly rent increase among all past administrations within 13 months of its launch, drawing criticism that there is little evidence of policy effectiveness.

This has severely impacted the housing stability of ordinary citizens and has been identified as a factor exacerbating instability in the housing market.

Over the past 10 years, the public sector accounted for only 10% of total housing supply. The speaker pointed out that Korea is the only developed country attempting to supply housing solely through public initiatives, criticizing that this policy hinders private supply and negatively affects the common people's economy.

Concerns were raised that public-led policies may deepen market inefficiencies rather than contributing to resolving the housing shortage.

It was explained that this could lead to a decrease in the diversity and efficiency of housing supply.

Multi-homeowners (2 or more) in Korea bear higher taxes compared to those in Los Angeles or New York in the United States. The speaker argued that there is insufficient evidence that strengthening property taxes helps stabilize housing prices and alleviate inequality.

It was also pointed out that high property taxes could instead shrink housing market transactions and transfer the burden to landlords, leading to higher rents.

This led to criticism that tax policies are not achieving their intended effects and are instead exacerbating market distortions.

Yang Jun-mo cited Ricardian Equivalence in economics, explaining that fiscal management through taxes and debt is essentially the same. He criticized the government's indiscriminate money-pumping policies for escalating inflation and the current economic burden on citizens.

The speaker warned that such expansionary fiscal policies might bring short-term economic stimulus effects but would long-term undermine national fiscal soundness and transfer the burden to future generations.

This led to criticism that the government's fiscal policies are disregarding economic principles and raised fundamental questions about the current administration's economic policy direction.

Yang Jun-mo took issue with Chief of Policy Kim Young-beop's characterization of high inflation, high interest rates, and high exchange rates as 'the cost of success.' He criticized the government for its unrepentant attitude during the economic crisis, which is deepening the suffering of the common people.

It was pointed out that the government's perception overlooks the economic difficulties currently experienced by the public and can be seen as an attempt to evade responsibility for policy failures.

Korea's distress index surged to 6.8 points after 2022 and remained high at 6.0 points in June 2026. The speaker pointed out that almost all industrial sectors, excluding semiconductors and securities, are experiencing negative growth.

This indicates that the economic hardship of ordinary citizens is worsening due to government policy failures, and the overall economic stagnation is deepening.

The speaker warned that if fiscal authorities expand spending, economic hardship would worsen, leading to a situation like Venezuela. He pointed out that expanding fiscal spending when overseas currency increases could lead to economic deterioration and urged for national debt management and interest rate cuts.

This criticism, coupled with the argument that the current government's left-leaning economic views are causing economic failure, expressed serious concerns about the government's economic policy direction.

According to the Ministry of SMEs and Startups' business trend index, the perceived index for June and July recorded 50%. This means that 75% of small business owners experienced economic deterioration. The speaker pointed out that labor market regulations focused on large corporations are causing an overconcentration of small businesses.

He emphasized that strengthening labor market flexibility and easing regulations are solutions to help small business owners.

This led to calls for the government to make active efforts to address the real difficulties faced by small business owners.

Lee Dong-soo stated that President Lee Jae-myung's approval rating has recently fallen sharply, now almost on par with the Democratic Party's approval rating. He analyzed that especially among men and women in their 30s, whose approval rating was in the 60s in February, a rapid decline has been observed recently, indicating a full-scale departure of centrist voters.

This drop in approval rating is attributed to a combination of various issues, including stock market crashes, rising jeonse (lump-sum deposit) and monthly rents, and the 'prosecution reform' controversy, spanning both livelihood and ideological concerns.

Young people are expressing dissatisfaction with the current government due to economic difficulties and opposition to certain ideological policies.

This can be interpreted as an indicator that the government needs to listen more closely to the voices of the youth.

Lee Dong-soo mentioned that the number of births in Korea, which fell below 500,000 in 2002, collapsed to less than half that, below 250,000, 20 years later in 2022. He explained that this demographic cliff phenomenon is causing young people to feel fundamental skepticism about the nation's future sustainability.

In particular, young people are opposing 'youth vote' policies proposed by older generations, such as basic income, suggesting that they want structural problem-solving rather than simple cash support.

This shows that young people are acutely aware of the severity of the demographic crisis and are demanding practical, long-term measures for it.

According to a Gallup Korea poll, youth in their 20s ranked low birth rate measures as the second most concerning issue before the presidential election. Lee Dong-soo explained that this result contrasts with how 40s and 50s generations considered judicial reform as most important.

He analyzed that this statistic shows that young people have significant concerns about Korea's future due to the demographic crisis.

Last year, there were approximately 49,000 marriages in Seoul, but housing demand was around 60,000 units. The speaker pointed out the housing supply shortage, stating that Seoul's housing completion volume would decrease to 27,000 units this year and 17,000 units next year.

This decrease in new housing units will naturally lead to higher housing prices, and he predicted that real estate prices would rise for several years regardless of government policies.

This shows concern not only about short-term housing market instability but also sustained price pressure due to long-term supply shortages.

Jang Dong-hyuk diagnosed that the short-term housing supply shortage is causing increases in jeonse, monthly rent, and sale prices. He emphasized 'excluding non-apartment units from the housing count' as a way to solve this problem.

He argued that excluding non-apartment properties from the housing count for a certain period could contribute to vitalizing housing supply and stabilizing the market.

He stressed the temporary exclusion of non-apartment units for 3 to 5 years from the housing count, expecting such a policy to lead to a substantial increase in housing supply.

The integration of kindergartens and daycare centers (Yubo Integration) is supported by both ruling and opposition parties, but practical conclusions are difficult due to complex conflicts of interest among stakeholders. Jang Dong-hyuk pointed out that the biggest hurdle in Yubo Integration is ultimately the problem of the stakeholders themselves.

He emphasized that this is an issue where the government must proceed with a clear direction, standards, and strong will, stating that the government's active leadership is needed to resolve the current conflicts.

This suggests that for successful Yubo Integration, the government must coordinate interests and solve problems with a strong policy will.

Shin In-kyun defined the current government's security situation not as mere incompetence but as 'intentional destruction.' He cited examples such as the destruction of the ROK-US alliance, replacement of the entire military command, and weakening status of military academies, arguing that the current government is deliberately attempting to dismantle national defense capabilities.

This argument expresses serious concerns that the current government's security policies are threatening South Korea's security.

Shin In-kyun mentioned that the Roh Moo-hyun administration in the past acknowledged the strategic flexibility of USFK and relocated its base to Pyeongtaek. In contrast, he pointed out that the current Lee Jae-myung administration shows a negative attitude towards strategic flexibility, criticizing this as an act that destroys the ROK-US alliance.

He explained that this stance reveals problems with the current government's understanding and approach to alliance relations.

Shin In-kyun stated that the current government is promoting 'selective conscription' to address the manpower shortage, encouraging soldiers to serve for 10 months and then become career soldiers for 4-5 years. However, he questioned the effectiveness of this policy, citing realistic preferences of those in their early 20s and concerns about the collapse of the officer training system.

In particular, skepticism is prevalent regarding whether encouraging short-term service followed by a transition to career military service can truly be an attractive alternative for the younger generation.

This led to criticism that fundamental measures to solve the manpower reduction problem are urgent, and the currently proposed policy is unlikely to be a realistic alternative.

Lee Young-jong claimed that when North Korea put forth the 'two states theory,' some parts of our government tried to package it as a 'peaceful two states theory' and accept it. He criticized that in reality, domestic political forces are exploiting North Korea's hostile strategy against the South, specifically mentioning links with certain politicians like Lim Jong-seok.

He expressed concern that North Korea's 'two states theory' signifies a fundamental change in inter-Korean relations, and our government's approach to it could have a significant impact on national security.

The speaker emphasized that such an attitude could be perceived as being swayed by North Korea's strategy or exploiting security issues for domestic political gain.

This can be interpreted as a call for the government to accurately grasp North Korea's intentions and respond decisively.

Lee Soo-seok characterized the Lee Jae-myung administration's diplomacy as 'showmanship diplomacy for domestic consumption,' diagnosing it as image management for the local audience. He criticized that the purpose of diplomatic actions lies in appealing to the domestic audience and spreading a favorable image. He argued that such policies are used to exaggerate achievements and block criticism from the opposition party through strategic negative techniques.

Furthermore, he raised doubts that the Ministry of Foreign Affairs' numerical performance announcements are fictitious and do not lead to actual strengthening of negotiating power.

The speaker urged a shift to principled practical diplomacy, warning that the current foreign policy, focused solely on domestic politics, could weaken the nation's diplomatic standing.

This criticism appears to stem from the perception that the government has lost the essential purpose of diplomacy and is only pursuing domestic political gains.

Lee Soo-seok raised substantial doubts about the numerical achievements announced by the Ministry of Foreign Affairs: 9 tours, visits to 14 countries, and the signing of 156 MOUs. He criticized that these figures are merely activities and do not lead to concrete changes such as actual investment and contracts.

The speaker pointed out that the government solely emphasizes over-packaging input, with insufficient explanation of what was actually gained.

This criticism reflects concerns that the government's diplomatic achievements are merely for show and are not leading to tangible benefits that the public can feel.

Cho Seung-hwan quoted Shin In-kyun's statement that the Lee Jae-myung administration's security policy is 'not incompetence but intentional,' pointing out that the Democratic Party's policies are ambiguous as to whether they are policies or ideology. He interpreted the Democratic Party's real estate policy as a government-led control model, analyzing that policies are being established under a specific ideological framework.

He also mentioned the opaqueness of inter-Korean relations and defense policies and the resulting sense of self-reproach, criticizing that the current government's policies lean towards ideological orientation rather than practicality.

Yang Hyang-ja, based on her experience in the Democratic Party, argued that the sole purpose of the Democratic Party's policy bills is to secure votes to win elections. She identified the Three Lease Laws, the Serious Accidents Punishment Act, and the 'prosecution reform' as results driven by vote considerations.

The speaker emphasized the necessity for a conservative party to take power in an era of technological hegemony competition, highlighting the importance of practical and future-oriented policy formulation.

The moderator criticized that amid the reality of North Korea possessing 57 nuclear weapons, President Lee Jae-myung is 'intoxicated' with the fact that South Korea ranks 5th in conventional weapons, stating 'we have more than enough power to protect ourselves.' He questioned whether a non-nuclear country can single-handedly be responsible for its security.

The moderator urged for practical security measures against nuclear threats and the development of policies that resonate with voters, targeting a change of government in 2028.