[Yonhap]
[Yonhap]

Gyeonggi Province Governor Kim Dong-yeon has highlighted growing economic polarization amid the Kospi's rise to the 9,000 level, recommending a book titled "Why Only They Get Rich."

Kim took to social media Monday to note that the Kospi had entered the 9,000 era. "Some people will have made money through stocks, and others will have lost money," he said. "Those who did not invest in stocks may feel a sense of relative deprivation — as if they have suddenly become paupers."

He said he wanted to introduce "an interesting book related to this," citing "Why Only They Get Rich," written by European economists Philipp Bagus and Andreas Marquart of the Austrian School.

"The book explores why some people become wealthy and why the wealthy find it easier to grow even wealthier," Kim said. "It would be worth a read for those involved in monetary or macroeconomic policy, or anyone interested in economics — if only to encounter this kind of perspective."

On the book's main argument, he said it "sharply criticizes how today's monetary policy, monopolized by governments and financial institutions, serves not the majority of citizens but a privileged class — the entrenched wealthy." He added that the authors go so far as to argue that "the monopoly over monetary policy must be wrested away from governments."

Kim described the book as "quite radical in its content," but said that setting aside whether its arguments are correct, "the part I found most compelling is the impact of monetary policy on income inequality and polarization."

He said the book analyzes how central banks printing large amounts of money fuels inflation, which ultimately deepens economic crises and worsens income inequality.

Kim also said Korea's polarization problem is hampering economic development, and that the exchange rate issue must be addressed alongside it.

"The reason I take a particular interest in this is that the biggest problem facing Korea's economy and society right now is income inequality and polarization," he said. "I believe sustainable economic development in Korea will be difficult without resolving this issue."

"If a situation continues where the economy grows quantitatively but only a small number of well-off people get richer while the middle class, ordinary citizens and vulnerable groups see their incomes stagnate or fall further behind, Korea's economy will not be sustainable," he said.

He also flagged the exchange rate as another pressing concern. "The won-dollar rate has exceeded 1,500 won. It even broke through 1,600 won at one point," he said.

"No one is talking about this exchange rate problem right now," Kim said. "This is a time when the government and political leaders must clearly raise and work to resolve issues such as income inequality and polarization, the exchange rate and household debt."

Meanwhile, Kim said he had never invested in stocks throughout his long career in public service.

"I was directly in charge of economic policy and served as deputy prime minister responsible for the economy," he said. "I did not invest in stocks at all — partly because I did not want to use information or knowledge I had gained in that role for personal gain, and partly because I did not want to be misunderstood by others."


ygmoon@heraldcorp.com