People Power Party leader Jang Dong-hyeok unveils regional economy, livelihood pledges

Jang Dong-hyeok, leader of the People Power Party, announced region-specific pledges on the 29th, saying he would revive local economies and people’s livelihoods with policies that “open up” opportunities rather than “block” them.

Speaking at a news conference at the National Assembly, Jang said he would “energize regional economies so that people’s lives improve.”

He said South Korea’s economy faces an “unprecedented crisis,” citing surging prices and a falling potential growth rate, and warned that stagflation is becoming reality. He said repeated shocks to the national economy have hit regional economies and households even harder.

Jang also criticized the Lee Jae-myung administration, saying it is continuing a “runaway” course without brakes and pushing the country “to the edge.” He said the People Power Party would “stop it and set things right.”

As key pledges on regional economies and livelihoods, he proposed steps to narrow the housing-market divide between the Seoul metropolitan area and the provinces, introduce a tax incentive to promote domestic production (a “Korea-style IRA”), build safeguards for small and midsize business succession, and expand discounts on road-occupation fees.

On boosting provincial real estate, Jang said the party would gradually ease debt service ratio (DSR) rules in the provinces to match those in the Seoul area, raising loan limits and expanding homebuying opportunities for end users. He also said the party would pursue a plan to exclude purchases of unsold homes in the provinces from the home-count used in housing-demand calculations.

On a “Korea-style IRA,” he said support would cover all industries at high risk of manufacturing hollowing-out, and would specify a domestic-purchase share requirement so that tax benefits extend across the domestic production ecosystem.

Jang also said he would push to enact a “Special Act on Small and Midsize Business Succession,” providing institutional support for succession at companies run for at least 10 years by owners age 60 or older. He said the plan would also support third-party succession and succession through mergers and acquisitions.

He added that, taking into account the share of non-tax revenue at local governments, the party would expand the scope of road-occupation fee reductions from housing to buildings and other structures.