Plans effective use of semiconductor windfall tax revenue; pledges progress on nuclear cooperation treaty revision and nuclear submarine acquisition; vows crackdown on share price manipulation and real estate crimes; promises 'social safety mattress' for public protection

President Lee Jae Myung speaks at a press conference marking the first anniversary of his inauguration, held at Cheong Wa Dae's Yeongbingwan on Monday. [Yonhap]
President Lee Jae Myung speaks at a press conference marking the first anniversary of his inauguration, held at Cheong Wa Dae's Yeongbingwan on Monday. [Yonhap]

President Lee Jae Myung said Monday he would soon unveil a large-scale investment project aimed at achieving a "great transformation in growth strategy," naming the goal of making South Korea an "unrivaled industrial powerhouse" as his top priority for his second year in office.

Speaking at a press conference marking the first anniversary of his inauguration, held at Cheong Wa Dae's Yeongbingwan, Lee said he would make 2026 "the year in which the bold dream of an irreplaceable Korea — a country no other nation can substitute — begins."

In his opening remarks, Lee reflected on the past year, saying, "Amid the waves of crisis over the last year, we instead confirmed South Korea's potential, possibilities and opportunities."

He then outlined four national governance goals, pledging to open "a new era of the K-Initiative" by building on the country's accumulated experience, capabilities, values and the public's energy to overcome national crises.

On the first goal, Lee said the government would advance toward becoming "an unrivaled industrial powerhouse where every citizen and every part of the country equally shares the opportunities and benefits of growth." It would also "pool the full capabilities of the public and private sectors to secure overwhelming competitiveness in advanced technology," he added.

The strategy involves identifying and nurturing "globally dominant growth engines" beyond the semiconductor sector to gain an edge in the era of technology hegemony competition.

Lee particularly stressed that "the most important thing is that the fruits of growth must not remain confined to specific companies, specific regions or specific sectors." He added that "the achievements and opportunities created through the collective strength of the community must flow down to small and medium-sized venture companies and spread evenly across our land and all sectors, translating into changes that every citizen can feel in their daily lives."

To that end, Lee previewed the large-scale investment project announcement. He said the government would "more carefully manage the National Growth Fund, which is receiving strong support, so it can fulfill its role of 'growth for all,' and will also devise the most effective ways to use the surplus tax revenue generated by the semiconductor industry."

On the second goal of becoming "a global diplomacy and security power," Lee said the government would "do its utmost to ensure that the precious diplomatic and security achievements built over the past year — including the revision of the Korea-US nuclear cooperation agreement, the introduction of nuclear submarines and the push to recover wartime operational control ahead of schedule — bear concrete fruit."

On Korean Peninsula policy, he said the government would "steadfastly forge a path toward peace, stability, coexistence and shared prosperity on the Korean Peninsula, under the overarching principle that peace is growth and peace is people's livelihoods."

On rooting out privilege, unfairness and prosecutorial reform, Lee said the government would "thoroughly crack down on market-disrupting crimes such as share price manipulation and real estate crimes that harm people's livelihoods, and will carry out structural reform tasks to dismantle privilege without wavering."

Lee named public safety as his fourth goal. He pledged to "realize proactive and thorough governance that protects the people with a seamless and thick 'social safety mattress' — encompassing life-saving finance, workplaces where people can work with peace of mind, a welfare system that gives up on no one's life, and crime-free streets." He also vowed to "build a system that puts the lives and safety of the people first across all areas of governance, including finance, welfare, labor, healthcare, public security and disaster response."

On the livelihood crisis stemming from the war in the Middle East, Lee said sufficient consideration must be given to the fact that the conditions each side presents and the outcomes each side wants differ, making it difficult for the United States and Iran to easily reach a final agreement. He added that "the current inflation rate is judged to be managed in a relatively stable manner compared to other countries."

He said the government would mobilize all available national capabilities to minimize any price increases, given the high risks ahead, and expressed his view that the situation would "not reach the level of a crisis."

On the semiconductor surplus tax revenue specifically, Lee said the government "must invest in South Korea's growth potential for future generations — for example, by identifying and investing in new growth engines for the semiconductor industry. We must make large-scale investments in areas that the private sector cannot handle on its own but that must be done."

Lee left room for debate on excess profits. "Excess profits are contentious," he said. "The labor-management conflict at Samsung Electronics has thrown a completely new topic of debate into our society. If effective demand cannot be created, demand disappears and a virtuous cycle becomes impossible. The state needs to collect this and provide support to sustain consumer demand."

He went on to say, "If only our country moves first, companies will flee and leading overseas advanced-technology firms will not invest domestically," adding that "debate at the international level is needed because it could affect the entire global trade order."


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