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Income-led Growth, Innovative Growth, and New Business Ecosystem: Complementary? or Contradictory?
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소득주도성장, 혁신성장, 그리고 新기업생태계: 보완인가? 상충인가?

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Type
Academic journal
Author
AhnChoong Yong (중앙대학교)
Journal
한국경제학회 한국경제포럼 한국경제포럼 제12권 제2호 KCI Accredited Journals
Published
2019.1
Pages
33 - 71 (39page)

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Income-led Growth, Innovative Growth, and New Business Ecosystem: Complementary? or Contradictory?
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Abstract· Keywords

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The current Moon Jae-in administration of Korea, during more than two years in office, has adopted as its flagship economic policy an income-led growth coupled with an innovative growth to urgently create jobs and resolve rampant unemployment, acute income polarization and slowing growth. The highest priority income-led growth policy has been implemented through a record minimum wage hike. The innovative growth policy with a far-lesser priority has centered on government-led subsidized venture businesses. The dual policies have produced significantly opposite results deviating from the intended objectives, being not harmonious each other but mutually contradictory. Korea needs to make a fundamental shift from the wage-led growth to an innovative growth regime. Specifically, the minimum wage for 2020 needs to be frozen, together with flexible working hours, digitalization, globalization, the human capitalization of micro businesses and adequate social safety nets. Korea also needs to create a new business ecosystem between big and small businesses.

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