The Uri Party’s three economy-related committees convened a joint press conference on Monday and suggested the government’s expansionary fiscal policies to boost next year’s economy. In connection with this suggestion, Deputy Prime Minister for Economy Lee Hun-jai, hinted strongly at the possibility of expansionary fiscal policies by telling the ministry’s senior officials during a meeting to analyze the effects of a fiscal deficit on the national economy. This is different from the government and the ruling party’s existing stance that they would not artificially stimulate the economy, showing that they are becoming more desperate about the current economic situation. Deputy Prime Minister Lee ordered the ministry employees to come up with measures to boost the recent slowing down exports, create 500,000 jobs and invigorate the sagging housing market.

Prime Minister Lee Hae-chan stressed the ease of regulations on businesses during a meeting that day, saying, “The Korean economy will be vitalized if an atmosphere where people can spend money is created.” Concerning deregulation, the Uri Party said during a joint press conference that it would start to review the abolition of 15 regulations barring businesses from investing. Kim Hyuk-kyu, the chairman of the party’s deregulation committee, said, “The people are expecting the government’s epoch-making measures.”

The abolishment or ease of limits on equity investment by the country's large business groups has met with opposition within the party. Chairman Kim said he and his committee would consider it again from the beginning, while the party’s floor leader Chon Jeong-bae said that the limits should not be scrapped or eased.

Within the ruling party, worried remarks on the current economic situation are pouring out. The party’s deregulation committee said in its internal document, “It is a time when radical deregulation measures are needed in order to stimulate the economy.” The party’s lawmaker Jeong Jang-sun said, “I heard that the people have given up expectations on politicians and the president, and they are really worried about the nation.” The lawmaker said during the press conference, “As job creation is the most important, we will work on it first.” An increasing number of presidential aides are saying, “We have focused on reforming the basis of the economy. The economic crisis may become chronic.”

(Yoon Young-shin, ysyoon@chosun.com )