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

List of Key Chapter Titles

1. 들어가며 (Introduction)
2. Executive Summary
3. 새 정부가 직면한 주요 이슈 (Key Issues Facing the New Government)
4. 새 정부 정책 방향 (New Government's Policy Direction)
5. 외교·통상 정책 (Diplomacy and Trade Policy)
6. 산업·금융 정책 (Industry and Finance Policy)
7. 기회와 해결 과제 (Opportunities and Challenges to Address)
8. (Appendix) 기업 거버넌스 관련 상법 등 개정안 검토 (Appendix: Review of Commercial Law and Other Amendments Related to Corporate Governance)

Document Overview

This report, published by the Samil PwC Management Research Institute in June 2025, aims to systematically analyze and assess the economic policy framework and industrial strategy direction following the inauguration of the 21st President of South Korea, Lee Jae-myung's administration. Based on President Lee Jae-myung's campaign pledges released 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 confronting the new government, including uncertainties surrounding North Korea's nuclear issue, threats of high U.S. tariffs, intensifying global protectionism and geopolitical risks, supply chain instability, widening gaps in advanced technology, pressure to address climate change, and sluggish domestic economic growth. Against this backdrop, the report notes that the new government has designated "Growth and Recovery" as its primary national agenda and sets the policy tone for major sectors based on the premise of economic vitality.

The core analysis is divided into two pillars: Diplomacy/Trade and Industry/Finance. In the diplomacy and trade domain, the report extracts three key phrases: "Trade Structuring Prioritizing National Interests," "Diversification of Diplomatic Spheres," 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 (U.S., Japan, China, Russia), the EU, and the Global South based on pragmatism. North Korea policy is set on the premise of denuclearization, seeking possibilities for relationship restoration and economic cooperation, while simultaneously acknowledging challenges constrained by UN sanctions and U.S. policy.

In the industry and finance domain, 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 promote South Korea as one of the world's top three AI powers through large-scale investment, infrastructure development, and nationwide adoption. Industrial innovation focuses on cutting-edge ABCDEF fields (AI, Bio/Medical, Content/Culture, Defense, Energy, Manufacturing), with special assessments of 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 enhance 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 designed to improve stock market transparency and attract 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 advanced industries like AI, and enhancing export competitiveness by expanding renewable energy. Challenges to be addressed involve potential conflicts with U.S. "onshoring" policies, the lack of a concrete AI roadmap and resource guarantees, the need for specifics in climate response and renewable energy policies, and the institutional foundation to ensure policy continuity. The appendix of the report also previews the potential directions for amendments to the Commercial Law and related laws that the new government may pursue 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 challenges of the South Korean new government's economic strategy.