Management Research Institute: Analysis of the Economic Policies and Industrial Strategies of the Lee Jae-myung Administration

Key Chapter Title List

1. Introduction
2. Executive Summary
3. Key Issues Facing the New Government
4. New Government's Policy Direction
5. Diplomacy and Trade Policy
6. Industry and Financial Policy
7. Opportunities and Challenges to Address
8. (Appendix) Review of Amendments to the Commercial Act and Other Laws Related to Corporate Governance

Document Introduction

This report was published by the Samil PwC Management Research Institute in June 2025, aiming to systematically analyze and evaluate the economic policy framework and industrial strategy direction of the 21st President of South Korea, Lee Jae-myung's administration, following its inauguration. Based on President Lee Jae-myung's campaign pledges announced by institutions such as the National Election Commission as of May 30, 2025, the report provides forward-looking strategic reference for businesses and industries on the eve of the new government's detailed policy formulation. The research background focuses on the multiple domestic and international pressures facing the South Korean economy, including structural challenges such as global order realignment, technological upheaval, slowing potential growth rate, and social polarization, as well as short-term economic downturn risks triggered by the policies of the Trump administration.

The main structure of the report is clear. It first outlines the complex external environment faced by the new government, including uncertainties surrounding North Korea's nuclear issue, threats of high US tariffs, intensifying global protectionism and geopolitical risks, supply chain instability, widening gaps in cutting-edge technology, pressure to address climate change, and sluggish domestic economic growth. Against this backdrop, the report points out that the new government has set growth and recovery as its primary national agenda, establishing the policy tone for major areas based on the premise of economic vitality.

The core analysis is divided into two pillars: diplomacy/trade and industry/finance. In the field of diplomacy and trade, the report extracts three key themes: trade structuring prioritizing national interests, diversification in the diplomatic sphere, and restoration of inter-Korean relations. The policies aim to reduce dependence on specific countries by diversifying export markets and product categories, strengthen supply chain stability, and develop relations with the surrounding four countries (US, Japan, China, Russia), the EU, and the Global South based on pragmatism. North Korea policy is set to seek possibilities for relationship restoration and economic cooperation under the premise of denuclearization, while simultaneously acknowledging challenges constrained by UN sanctions and US policy.

In the industry and finance sector, the report provides a detailed analysis of five key growth drivers centered on AI: AI, Industrial Innovation, Renewable Energy, Region-led Growth, and Stock Market Revitalization. Among these, AI is positioned as the core foundation of the new growth economy, with the government planning to propel South Korea into becoming one of the world's top three AI powers through large-scale investment, infrastructure construction, and nationwide popularization. Industrial innovation focuses on cutting-edge fields of ABCDEF (AI, Bio/Medical, Content/Culture, Defense, Energy, Manufacturing), with special assessments on support policies for national core industries such as semiconductors, defense, shipbuilding, and K-Culture. The renewable energy strategy centers on building an "Energy Highway," aiming to strengthen green manufacturing competitiveness to address global carbon trade barriers. Furthermore, the report evaluates the regional balanced development strategy centered on "5 Poles and 3 Specials," as well as capital market reform plans aimed at enhancing stock market transparency and attracting foreign investment.

The report concludes with a comprehensive assessment of the opportunities presented by the new policies and the challenges that need to be addressed. Opportunities mainly include mitigating trade risks through trade and diplomatic diversification, stabilizing supply chains, creating comprehensive industrial opportunities through cutting-edge industries like AI, and enhancing export competitiveness by expanding renewable energy. Challenges to address involve potential conflicts with US onshoring policies, the lack of a concrete AI roadmap and resource guarantees, the need for specifics in climate response and renewable energy policies, and establishing an institutional foundation to ensure policy continuity. The appendix of the report also previews the potential directions for amendments to the Commercial Act and related laws that the new government may advance to improve corporate governance and protect shareholder rights.

This analysis, based on publicly available government pledges and macro data, provides a systematic and structured framework for professional readers to understand the logic, potential impact, and implementation difficulties of the South Korean new government's economic strategy.