1. Overview
Hong Jong-hak (홍종학Hong Jong-hakKorean; born 12 May 1959) is a prominent South Korean economist and politician who has served as an emeritus professor of economics at Gachon University, a Member of the National Assembly, and the first Minister of SMEs and Startups under President Moon Jae-in. Throughout his career, Hong Jong-hak has been a vocal advocate for economic democracy, fair competition, and equitable growth, actively shaping policy and legislative efforts to promote these values in South Korea. His public service reflects a consistent commitment to social liberal principles, emphasizing reform within the nation's economic structures.
2. Life
2.1. Birth and Early Life
Hong Jong-hak was born on 12 May 1959, in Incheon, then part of Gyeonggi Province, South Korea. His early education included attending Incheon Songhyeon Elementary School from March 1965 to February 1971, Daeheon Middle School from March 1971 to February 1974, and Jemulpo High School from March 1974 to February 1977.
2.2. Education
Hong pursued his higher education in economics, obtaining all three of his degrees in the field. He earned both his Bachelor of Arts and Master of Arts degrees in Economics from Yonsei University, completing his undergraduate studies from March 1977 to February 1983, and his master's degree from August 1984 to August 1986. He then continued his academic pursuits in the United States, receiving his Doctor of Philosophy in Economics from the University of California, San Diego (UCSD) from September 1986 to June 1991.
3. Career
Hong Jong-hak's career spans academia, civic society, national politics, and government ministerial roles, consistently focusing on economic policy and reform.
3.1. Academic Career
Hong Jong-hak began his academic career in 1992 at Gachon University (then Kyungwon University), where he served as a lecturer, assistant professor, associate professor, and eventually a full professor. He taught economics and conducted research, contributing to the academic discourse on economic issues in South Korea. He later held the title of emeritus professor in the Global Economics Department at Gachon University.
3.2. Civic Society Activities
Before and during his political career, Hong Jong-hak was deeply involved in various civil society organizations, particularly those advocating for economic justice and democratic reform. From 1999 to 2007, he served as a Policy Committee member for the Citizens' Coalition for Economic Justice (CCEJ), an influential civic group. He furthered his involvement with CCEJ as the Policy Committee Chair in 2006 and later as the Director of the Economic Policy Research Institute for CCEJ from 2009 to 2011.
His civic engagement also included roles such as a member of the Competition Policy Advisory Committee for the Fair Trade Commission from 2003 to 2007 and a member of the Industrial Development Deliberation Committee for the Ministry of Trade, Industry and Energy (then Ministry of Commerce, Industry and Energy) from 2003 to 2005. He also co-represented several progressive and reform-oriented think tanks and organizations, including Agenda 27 for Progress and Reform (2009-2012), the Think Tank Network for Welfare State and Democracy (2011-2012), and Citizens' Political Action "The Nation I Dream Of" (2011-2012). These roles allowed him to significantly influence policy discussions and advocate for his economic and social principles.
3.3. Member of the National Assembly
Hong Jong-hak served as a Member of the 19th National Assembly from May 2012 to May 2016, entering as a proportional representation candidate (number 4) for the Democratic United Party.
3.3.1. Parliamentary Activities
During his tenure in the National Assembly, Hong Jong-hak actively participated in legislative efforts, primarily focusing on chaebol reform and economic democracy. He served on the National Assembly's Finance Committee for both the first and second halves of the 19th National Assembly (July 2012 to May 2016). He also contributed to the Special Committee for Strengthening Public Pensions and Alleviating Poverty from August 2015 to May 2016. A notable legislative achievement was his leadership in initiating and passing a revision to the Customs Act in 2013, which shortened the renewal period for duty-free shop licenses from 10 years to 5 years, a move aimed at promoting fair competition and curbing the monopolistic practices of large corporations. He also served as the head of the Democratic Party's Constitution Article 119 Economic Democratization Task Force Team from 2011 to 2012, and as the Policy Committee Chairman for the Democratic United Party in 2012.
3.3.2. Electoral History
Hong Jong-hak's electoral participation is detailed in the table below, showcasing his successful bid for a proportional representation seat in the 2012 general election.
| Election | Year | District | Party Affiliation | Votes | Percentage of votes | Results |
|---|---|---|---|---|---|---|
| 19th National Assembly General Election | 2012 | Proportional representation | Democratic United Party | 7,777,123 | 36.45% | Won |
3.4. Presidential Campaign Involvement
After concluding his term as a lawmaker and announcing that he would not seek re-election, Hong Jong-hak played a pivotal role in the 2017 presidential campaign of then-candidate Moon Jae-in. He served as the Deputy Head of the Policy Headquarters for Moon Jae-in's Central Election Campaign Committee (May to July 2017) and was instrumental in developing the candidate's policy platform, notably leading the composition of the campaign manifesto titled "A Nation Worthy of a Nation."
3.5. Minister of SMEs and Startups
Hong Jong-hak was appointed as the first Minister of SMEs and Startups by President Moon Jae-in on 21 November 2017, serving until 8 April 2019. His appointment was met with considerable anticipation within the small and medium-sized enterprise (SME) sector, which expressed high expectations for the newly established ministry to serve as a central control tower for SME policies. As minister, he was tasked with setting the policy direction for supporting SMEs and startups, fostering innovation, and addressing challenges faced by these businesses.
4. Ideology and Policy Stances
Hong Jong-hak's public and political career has been characterized by a consistent adherence to principles of economic justice and democratic reform.
4.1. Economic Democracy
His core economic philosophy is centered on economic democracy, a concept he actively championed through his legislative work and public advocacy. He consistently emphasized the importance of fair competition, equitable distribution of wealth, and a level playing field for all economic actors, including small and medium-sized enterprises and startups. His efforts in the National Assembly, such as the revision of the Customs Act concerning duty-free shops, exemplify his commitment to curbing the excessive power of large corporations and promoting a more balanced economic structure. This perspective underpins many of his policy proposals, aiming to create an economy where opportunities are widely accessible and growth benefits all segments of society, not just a select few.
4.2. Other Policy Positions
Beyond economic democracy, Hong Jong-hak has advocated for other significant policy initiatives. In 2014, he proposed legislation aimed at expanding the supply of rental housing specifically for newlywed couples. This proposal faced opposition, particularly from the Saenuri Party, which raised concerns about funding. Hong, however, countered these criticisms by clarifying that the proposal did not entail providing housing free of charge but rather focused on increasing affordable rental options.
5. Writings and Research
Hong Jong-hak's intellectual contributions are reflected in his numerous published works, including books, academic papers, and policy reports, primarily focusing on economic issues.
- 삼수사수를 해서라도 서울대에 가라Go to Seoul National University even if you have to try three or four timesKorean (Future and People, 1998)
- 미시적 경제분석Microeconomic AnalysisKorean (3rd ed., Bakyoungsa, 2005, co-authored with Kang Tae-jin and Yu Jeong-sik)
- 미시경제학 연습Exercises in MicroeconomicsKorean (Bakyoungsa, 2006, co-authored with Yu Jeong-sik)
- 한국경제 새판짜기Restructuring the Korean EconomyKorean (Middlehouse, 2007, co-authored with Kim Sang-jo, Yu Jong-il, and Kwak Jeong-soo)
He also contributed to scholarship through translations, including:
- Growth-Friendly Progress by Gene Sperling (translated, Middlehouse, 2009)
His major academic papers and policy reports include:
- "Finding the Korean Model of a Democratic Market Economy," Economy and Society, No. 86, pp. 69-94 (2010).
- "Comparison of US Corporate Group Policies Before and After the Great Depression," American History Research, Vol. 31, pp. 109-138 (2010).
- "Comparison of Hoover and Roosevelt's Socio-Economic Policies Before and After the Great Depression," Historical Criticism, No. 87, pp. 50-77 (2009).
- "Corporate Group Reform in the US and UK and Its Implications," Korean Economic Review, Vol. 21, pp. 133-160 (2008).
- "Polarization and Economic Structural Reform," Applied Economics, Vol. 8, No. 2 (2006).
- "Critique of Korean Economic Policy After the Financial Crisis - From the Perspective of a Structural Reformer," Research Report (2005).
- "A Study on Predatory Lending," Korean Economic Journal, Vol. 12, No. 1 (2005).
- "Analysis of Credit Card Issues Through Korea-US Comparison," Applied Economics, Vol. 6, No. 1 (2004).
- "Rules and Government Control in the Korean Economy," Gyeongsan Nonchong, Gachon University, College of Business and Economics (2002).
- "Two Views on Chaebol Issues: Evolution Hypothesis vs. Cancer Cell Hypothesis," Applied Economics, Vol. 2, No. 2 (2000).
- "A Study on the Inefficiency of the Ranking System," Economic Research, Vol. 45 (1997, co-authored with Kim Seong-tae, Park Ju-hyun, and Han Gwang-seok).
- "Characteristic Phenomena of Korean Consumption," Yonsei Economic Research, Vol. 1 (1994).
- "Economic Analysis of the Contribution-Based Admission System - From the Perspective of the Signaling Hypothesis," Economic Research, Vol. 42 (1994).
- "Voluntary Disclosure of Information," Korean Economic Review, Vol. 9 (1993).
6. Personal Life and Anecdotes
Hong Jong-hak's public career has also seen instances that garnered significant media and public attention, shedding light on his character and public perception.
6.1. Controversy over "Hakbeol" Remarks
In October 2017, during the process of his ministerial nomination, Hong Jong-hak faced controversy regarding remarks he had made in a book published in 1998, titled Go to Seoul National University even if you have to try three or four times. The book reportedly contained a passage suggesting a "hakbeol" (school-based hierarchy) or "prestigious university supremacy" viewpoint, stating that "those who did not graduate from a prestigious university lack cultivation." This drew public criticism, to which Hong Jong-hak issued an apology, stating that his views had changed since he wrote the book and apologizing for the content, regardless of the reasons.
6.2. Other Anecdotes
In February 2016, an incident during a parliamentary speech by then-President Park Geun-hye captured media attention. Hong Jong-hak was photographed reading a webtoon on his phone during the speech. He clarified the incident by explaining that, in his capacity as the head of the Digital Communication Headquarters, he was reviewing content uploaded to the "Empathy Cafe," an internal communication platform, rather than simply reading a webtoon for leisure.
7. Assessment and Impact
Hong Jong-hak's career has been marked by both significant achievements and notable controversies, reflecting the complexities of South Korean politics and public life.
7.1. Positive Assessment
Hong Jong-hak is widely regarded as a persistent advocate for economic democracy and chaebol reform in South Korea. His academic work and civic engagement through organizations like the Citizens' Coalition for Economic Justice laid a strong foundation for his policy stances. As a legislator, he played a crucial role in championing reforms aimed at fostering fair competition and reining in the power of large conglomerates, notably through the revision of the Customs Act for duty-free shops. His instrumental role in drafting the policy platform for Moon Jae-in's presidential campaign further highlights his influence on progressive economic policies. As the first Minister of SMEs and Startups, he led efforts to establish the new ministry and set a direction for supporting small and medium-sized enterprises, a sector vital for inclusive economic growth. The small and medium-sized business community generally held high expectations for his leadership in this role. His entry into the Cho Kuk Innovation Party in March 2024 further indicates his continued involvement in progressive political movements.
7.2. Criticism and Controversies
Despite his public service, Hong Jong-hak's career has not been without criticism. During his ministerial nomination hearing for the Ministry of SMEs and Startups in 2017, he faced intense scrutiny from opposition parties, including the Liberty Korea Party and the People's Party. The primary point of contention was a commercial property in Chungmuro, Jung District, Seoul, with an annual revenue of approximately 200.00 M KRW, which his middle school daughter had acquired through a gift in November 2015. This transaction was rigorously questioned by the opposition during the hearing, raising concerns about financial transparency and ethical conduct. Despite the strong opposition, President Moon Jae-in proceeded with Hong's appointment.