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184093
Tue, 05/24/2011 - 13:29
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With less space for ideology, welfare policies occupy conservative GNP

By Kim Eun-jung
SEOUL, May 24 (Yonhap) -- After soul-searching in the wake of April's by-election loss and ensuing leadership shift, the conservative ruling Grand National Party (GNP) is promising wider welfare benefits, signaling a shift in its pro-business policies.
With less than one year left before the general elections, a growing number of GNP lawmakers has been calling for expanding benefits to low-income households and young students who suffer from soaring commodity prices and a grim job market.
Drastically reducing college tuition fees is one of the major welfare measures that reform-minded GNP members, led by new floor leader Hwang Woo-yea, have been pushing for, creating a fissure in the ruling camp and raising allegations of populism.
"We have to give hope to young people by making visible progress after having deep discussions on specific measures on lowering college tuition fees this year," Hwang said at a briefing. "The college tuition problem needs determination through collection of public opinion."
His "half-priced college tuition" policy reflects the growing burden on students and parents in a country that ranks second on a list of countries with the highest average college tuition fees after the United States, as shown in a 2009 Organization for Economic Cooperation and Development (OECD) report.
Opponents in the party, however, have criticized the new leadership for following the welfare agenda set by the liberal opposition parties and threatening the conservative party's traditional values.
If the party is swayed by popular policies, they say, it will lose its identity, and as a results, traditional GNP supporters would turn away.
"It is a populist policy targeting voters," said Rep. Shim Jae-chul, who was formerly in charge of the GNP's policies. "It sounds similar to the unrealistic claims by the Democratic Party (DP). It would only legitimize the opposition party's position after all."
Tax cuts for high-income individuals and big companies, one of the flagship economic policies by President Lee Myung-bak, are also challenged by the new leadership and other lawmakers, who complain the cuts only benefit the rich.
"The centrist reform stresses on fairness and distribution as much as autonomy and competition," Rep. Chung Doo-un of the GNP said. "Abolishment of additional tax cuts will be a symbolic first step for such a move."
Opponents to the comprehensive welfare measures say it is unfair for taxpayers to support those on welfare who are capable of paying.
Seoul Mayor Oh Se-hoon, affiliated with the GNP and one of the potential presidential candidates, is fighting against the city council's move to provide free lunch to all students.
In protest of the opposition-controlled city council's move, Oh has pushed for a referendum to end the school meal program, saying it is a program driven by the opposition's "welfare populism."
"The GNP should not be swayed by free welfare populism, as the party should pursue welfare and growth together," Oh said. "We have to keep in mind that there are more imminent matters, including employment, the elderly and child care."
As of Tuesday, 420,000 Seoul residents had signed up to open a referendum on the free lunch program, allowing the city government to ask whether they approve the free lunch program.
At least a third of the eligible voters must vote to make the referendum's results valid.
ejkim@yna.co.kr

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