Han Dong-hoon, former representative of the People Power Party, criticized Democratic Party of Korea presidential candidate Lee Jae-myung's "hotel economy theory," saying it is "Noh Ju-seong (no-show led growth)."
On the 20th, Han noted on Facebook that "the core of candidate Lee Jae-myung's economic policy, hotel economics, is something he has proudly mentioned since the 2017 presidential primary," adding, "I thought it couldn't be true, but since he seriously brought it up again, I will seriously address it."
Han said, "The 'soju-led growth' of the Moon Jae-in administration had some theoretical basis known as 'wage-led growth.' Nevertheless, it ended in abject failure, and South Korea's potential growth rate fell further," and stated, "What I have named 'Noh Ju-seong' in Lee Jae-myung's hotel economics means that even if a traveler cancels a reservation with a deposit of 100,000 won at a hotel, the 100,000 won contributes to economic activation because it has been spent."
Han stated, "The claim that public funds can sufficiently stimulate the domestic economy is flawed, as this led corporations to tighten their belts, which almost resulted in reduced hiring."
Han mentioned, "There is a famous error in economics called 'the broken window fallacy,'" explaining, "If the window is not broken, what happens to the glaziers? Money circulated only to repair the window, and growth was encouraged," pointing out that the argument that breaking the window is beneficial is erroneous.
Han noted, "Money can be spent positively and productively, but it is unfortunate that money is used to restore damages," and added, "While all citizens are doing their best in economic life, does it make sense for the government to stick money into places the ruler wants, regardless of anything else?"
He further stated, "Can we lead an economic power like South Korea with a mindset that if no-shows happen at hotels, as long as the money circulates, it's fine?" and added, "Lee Jae-myung is more dangerous due to his incompetence."