Tag Archives: Liberty Korea Party

South Korea – Local and by-elections are a strong endorsement of President Moon

Local and by-elections were held on June 13, 2018. 12 parliamentary seats were up for grabs, in addition to 17 mayoral and provincial governor positions, and 4,016 local administrative, legislative and educational posts. Exit polls show that the ruling Democratic Party (DP) has swept the elections: it has taken 11 of the 12 by-elections and 14 of the 17 local seats. The largest opposition party, the Liberty Korea Party (LKP) has been handed a significant set-back: it is expected to take only one of the by-election seats, and two of the local election races.

This year’s electoral contest is closely-watched as a harbinger of President Moon’s ability to extend the momentum of change that brought him into office more than a year ago and convert his high presidential popularity into electoral success for his party, the  DP. It is also seen as a signal the opposition conservative LKP’s ability to weather the significant political setbacks from the impeachment and subsequent conviction of former President Park Geun-hye on corruption and abuse of power charges on April 6, 2018, and the indictment of former President Lee Myung-bak on April 10, 2018, for 16 counts of embezzlement, corruption, and abuse of power. These results are a strong endorsement of President Moon, who has had a tough time pushing his agenda against the large legislative opposition led by the LKP.

President Moon promised a “major shift” in policies when he took office, and he has delivered on, arguably, the most spotlighted and highly-profiled issue of international interest for the year: the President brought North Korea and the United States together at the negotiations table in Singapore on June 12, 2018. The effort towards and accomplishment of bringing the two mercurial heads of government to discuss peace has seen President Moon’s approval ratings remain at unprecedented levels – exceeding high 70s – in the second year in office. Some of this success has brushed off on the ruling DP: it is enjoying approvals exceeding 50 percent amid falling approvals for the other parties in the legislature. These numbers bode well for the DP going into the elections, and the results have supported expectations.

Relations in the Korean peninsula will likely remain in the news for some time to come, and may continue to generate approvals for the President and the DP. This will be useful, given that the President’s other initiatives have not been as stellar. In particular, President Moon’s effort to realize constitutional revisions died in the legislature, while his push for a income-led growth in the country has been resisted by corporations, and small- and medium enterprises.

Talks of constitutional revision have been ongoing since the promulgation of the 1987 Constitution in South Korea; despite the frequency, constitutional revisions did not progress beyond discussions. The clamour for constitutional revision likely hit a peak with former President Park Geun-hye’s impeachment, and polls in September 2017 report that 78.4 percent agreed that the referendum on constitutional revisions should be held in conjunction with the June 2018 elections.

President Moon pushed the legislature on the issue but was stymied by the LDP in the legislature. Indeed, when the legislature failed to develop revisions, President Moon submitted a constitutional revision bill to the legislature on March 26, 2018. The revisions, developed by a constitutional committee, included decentralization of government and a two-term limited presidency. However, opposition parties boycotted the bill: only 114 legislators were present for the session, far short of the 192 needed to pass, thus effectively killing the bill. Given popular demand for constitutional revisions, the election results may be a signal for how voters view the resistance by the opposition parties.

Another important initiative that the President has pushed is the wage-led economic growth model. Following on this, in July 2017, the Minimum Wage Commission announced a 16 percent wage rise to 7,530 won ($6.60) per hour from 2018, with the possibility of increasing it to 10,000 won per hour by 2020. To ensure that small and medium-sized enterprises are able to meet the new wage increases, as well as to fund the new wage increases and job creation policies, the President called for new taxes. Despite these efforts, youth unemployment remains high; meanwhile, under pressure by businesses and corporations, the National Assembly and the cabinet have adopted revisions to the minimum wage bill so that calculation of minimum wage includes bonuses and benefits, including health benefits. While employers have welcomed the revisions, labor groups argue that these inclusions will effectively offset the new minimum wage policies and have called on the President to veto the bill.

The by-election and local election results are a clear endorsement for President Moon. Much can happen in the two years leading to the next general elections, but the public support, new electoral wins, and the LDP’s losses may pave the way for legislative support of the President’s policies.