(LEAD) Cracks emerge between top policymakers over job crisis

(ATTN: RECASTS headline, lead; CHANGES photo; UPDATES throughout with meeting result)

SEOUL, Aug. 19 (Yonhap) -- South Korea's ranking officials revealed a disparity in their views on economic policies in the wake of dismal job conditions, which critics attributed to the effect of President Moon Jae-in's progressive policy.

Senior officials from the presidential office, government agencies and the ruling party held an emergency meeting to discuss ways to boost employment after the nation logged the lowest level of job addition in more than eight years in July.

They all conceded the policy makers should take responsibility for the jobs crisis and agreed on the need for continued expansionary fiscal policies to spur growth and create jobs.

But Moon's top aides appeared to differ in their views on the cause and solution of the employment doldrums.

Jang Ha-sung, presidential chief of staff for policy, one of the key architects of the so-called income-driven growth drive, expressed confidence in the long-term effect of the policy and called for patience until it delivers tangible results.

In contrast, Finance Minister Kim Dong-yeon, regarded as an advocate of market-driven growth, said the government will review the effect of its economic policies and will revise its elements if needed.

The meeting came after government data showed Friday that the number of jobs created in July fell to the lowest levels in over eight years, a blow to President Moon, who pledged that job creation would be a priority policy goal

The unemployment rate stood at 3.7 percent last month, up 0.3 percentage point from a year earlier, according to the report compiled by Statistics Korea.

The number of employed people reached 27.08 million in July, up just 5,000 from the same period in 2017, the smallest gain since January 2010, according to the data.

The poor performance came as Asia's fourth-largest economy struggles with the fallout of corporate restructuring and stagnant domestic demand.

Critics also said the president's mantra of income-driven growth and policies of increased wages have backfired as businesses avoid hiring amid signs of economic slowdown and out of concern over increased labor costs.

The government and ruling party vowed to take every possible step to improve the situation after the meeting.

Jang apologized but said he is sure the situation will get better once the core economic drives take effect.

"I can say for sure that once the initiatives of income-led, innovative growth and a fair economy take effect, employment will improve as the economy will revitalize and low- and middle-classes will feel the change from the better economic performance," he said.

He also noted that employment issue is not something that can be fixed in a short timeframe.

"Cheong Wa Dae does take the matter very seriously, and we feel deeply and realize it's our responsibility for the difficulties experienced by temp workers and those who run smaller businesses," Jang said. "I dare to ask, apologetically, that they have faith in us and wait a little (longer)."

Finance Minister Kim said he intends to review the effects of key economic policies that have been implemented so far, pointing out the employment issue comes from a combination of structural, economic and policy factors.

He said the government will be ready to revise policies if necessary, through consultations with related ministries and the parliament.

He said the ministry will work to boost fiscal spending next year and to speed up the process for job-related policies and the execution of extra budgets.

Rep. Kim Tae-nyeon, policy chief of the ruling Democratic Party, also called for an expansion in fiscal spending, noting that the government expects to see an increase in tax revenue by 60 trillion won (US$53 billion) over the next five years.

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