[Lee·Yoon Economic Nomics Analysis] Lee... Emphasis on 'Reform' to Resolve Unfairness and Opacity

Top Priority Is Public and Financial Reform... Includes De-ideological and Non-partisan Pledges Too

[Asia Economy Reporter Baek Kyunghwan] The new economic vision of Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, known as ‘Leejaenomics (Lee Jae-myung + Economics),’ is aimed at becoming a ‘top 5 global comprehensive national power economic giant.’ Yoon Hoo-duk, head of the policy headquarters of the campaign committee responsible for overseeing the policy framework that consolidates Lee’s economic pledges, explained, “In the newly launched integrated government under Lee Jae-myung, this is a process to achieve transitional growth through catalytic national investments in an era of great transformation,” adding, “Through this, we will restore the balance of power among various sectors and achieve fair growth.”

The basic framework of ‘Leejaenomics’ reflects Lee’s perspective on the domestic economy. The logic is that the current crisis cannot be turned into an opportunity with the existing industrial and economic structures alone. In particular, the view that unfairness and opacity are obstructing growth and causing the ‘Korea discount (external undervaluation)’ is deeply ingrained in Lee’s mind. On the 23rd, Lee stated on the radio, “If the Korea discount were eliminated, the composite stock price index would far exceed 4000.”

Earlier, during the primary process, Lee presented a blueprint for economic growth called ‘transitional fair growth’ and announced the ‘555 growth vision’?KOSPI index 5000, per capita income $50,000, and ranking fifth in comprehensive national power?which is interpreted as stemming from this background.

To ensure the success of Leejaenomics, two major reforms in the public and financial sectors are essential. The public reform includes expanding the open recruitment system to enhance the professionalism of public officials, aiming to create a problem-solving smart government rather than a bureaucratic-centered one. For financial reform, a ‘one-strike-out’ system will be introduced to strictly punish and compensate anyone involved even once in stock price manipulation, preventing them from participating in the stock market.

Additionally, concrete implementation plans include the introduction of a science and technology innovation vice prime minister system, reform of planning and budgeting functions, and strong punishment for stock price manipulation, all advocated since the presidential primary. Lee himself has mentioned these as “conditions to complete Lee Jae-myung’s new economy.”

The four major transformations are divided into ▲science and technology ▲industry ▲education ▲and national land transformation. In the science and technology sector, ten future strategic technologies such as artificial intelligence, quantum technology, and aerospace will be promoted as a ‘Presidential Big Project.’ There is also a plan to completely change the research and development system into an open system centered on industry and researchers. Kang Nam-hoon, professor of economics at Hanshin University and chair of the basic social committee of the campaign, conveyed the purpose of the great transformation by saying, “During a transitional period, the government must actively engage in areas that the private sector does not handle well, such as basic infrastructure and basic science cultivation, to climb the upward trajectory.”

‘Leejaenomics’ also reveals Lee’s direction toward de-ideologization and de-partisanship. Regarding the energy sector among the four major transformations, Lee disclosed a roadmap by referencing former Presidents Park Chung-hee’s industrial highway and Kim Dae-jung’s internet highway. Lee promised, likening the two former presidents, “We will hasten the development of various technologies such as solar cells, wind power, energy storage devices, and eco-friendly future vehicles utilizing these, and build an energy highway.”

It is also notable that ‘education’ is boldly included in the core economic pledges. The intention is to build foundational strength to respond to future industries through educational support. As a plan for educational transformation, Lee proposed expanding support for university education and establishing an innovation system for regional universities. He plans to flexibly change curricula so universities can respond to future industries and expand lifelong education support.

However, there are also concerns that the objective indicators representing the success of Leejaenomics, such as the external economic growth targets, may be difficult to achieve. To reach $1 trillion in exports, an annual growth rate of 9.2% is required, and to achieve a per capita income of $50,000, an annual growth rate of 7.4% is necessary, which is challenging given the global and domestic economic conditions over the past two to three years. A campaign official also stated, “Since the new economic vision has been unveiled, we are continuously refining detailed plans through committees and other channels,” adding, “We plan to reflect criticisms that detailed economic support measures according to the target settings need further refinement.”

This content was produced with the assistance of AI translation services.