Seoul: Marking the start of his second year in office, President Lee Jae Myung put forth four major policy goals to establish an "irreplaceable Korea," emphasizing the aim to make Korea a leading nation in technology competitiveness with benefits reaching all citizens. He announced plans for imminent large-scale investment projects.
According to Yonhap News Agency, the government aims to enhance its competitive edge in artificial intelligence (AI), building on its existing strength in the semiconductor sector, to avoid falling behind in an AI-driven economy. As the Lee administration enters a phase focused on delivering tangible results, the goals align with the need for innovation.
During a nearly 170-minute-long press conference, President Lee outlined three additional objectives: transforming Korea into a "strong diplomatic and security nation," fostering "a society where norms and regulations are upheld," and ensuring the government "protects the people's lives." Reflecting on his first year as a period of stabilization, he emphasized the need to become an innovative, pragmatic government adaptable to change.
The president's confidence appears rooted in an assessment of economic indicators. However, reshaping Korea's export industrial structure presents social and economic challenges, requiring the management of labor relations and collaboration between conglomerates and smaller enterprises within an AI-led growth strategy.
In the past year, the Lee administration navigated trade tensions with the United States and global uncertainties such as the U.S.-Iran conflict, while boosting Korean bourses. Despite recent volatility, major companies like Samsung and SK hynix continue to perform well, supporting Lee's strategy. The focus on AI and space sectors as future growth engines is crucial.
President Lee addressed the unfavorable foreign exchange rate, labeling the Korean won's recent weakness against the U.S. dollar as "temporary." However, the government must manage foreign exchange volatility diligently.
Moving forward, the administration must consider deregulation and address labor issues, such as the recent bonus payment strife at Samsung Electronics. The conflict resolution is incomplete, with excess profit issues persisting. The president's suggestion that profits be reinvested for future growth aligns with global practices.
As technology progresses and global firms invest heavily in future growth, labor-management relations require reform for global competitiveness. Following the Samsung Electronics labor dispute, industry experts have urged a review of the "yellow envelope law," highlighting concerns over subcontractor union demands. With the administration and ruling party focused on identifying growth engines, these issues must be addressed.
Bipartisan consensus is crucial, as President Lee has acknowledged the importance of accommodating opposition views. Social consensus will be instrumental in implementing innovative pragmatism.