Lee calls for policies supporting young people left out of tech, stock boom
President Lee Jae Myung speaks during a Cabinet meeting at Cheong Wa Dae, Tuesday. Yonhap
President Lee Jae Myung on Tuesday called for state policies supporting young people, pointing out that recent booms in the semiconductor and stock markets have widened asset disparities, leaving many young people behind.
The president made the remarks while presiding over a Cabinet meeting amid concerns that the record high stock market boom has widened asset disparities between stock investors and non-investors.
The benchmark Korea Composite Stock Price Index (KOSPI) was trading above 9,100 points Tuesday, a sharp rise from a year ago, when the index was in the mid- to high-2,000 range. Semiconductor shares have driven the upsurge amid increased demand for artificial intelligence-related chips.
"The semiconductor boom resulted in a stellar surge in the stock market, but it has also cast a shadow of asset polarization as its flip side," Lee said.
The president described younger generations as the largest group left behind by the boom, with fewer opportunities to accumulate assets through stable jobs or income.
"The government should painfully acknowledge the sense of isolation voiced by young people who say that record high bonuses and KOSPI figures feel like stories from another world," the president noted, calling for comprehensive policies to provide them with more opportunities.
Lee instructed officials to swiftly pursue policies to "expand the ladder of opportunities for young people across all areas of life."
The president pointed to excess tax revenues expected from the semiconductor boom as he called for efforts to lower fuel prices despite continued upward price pressures.
In mid-March, the government introduced fuel price caps in a bid to stabilize domestic fuel prices amid supply chain disruptions driven by the conflict in the Middle East.
The latest maximum consumer prices for regular gasoline, diesel and kerosene set by the government stand at 1,934 won (US$1.26), 1,923 won and 1,530 won per liter, respectively.
"Shouldn't the price cap system be retained more aggressively while lowering the maximum prices somewhat?" the president noted.
"It may be true that lowering oil taxes, thanks to excess tax revenues from semiconductors and others, does not create a financial burden but instead helps boost people's purchasing power," he added, instructing officials to minimize price burdens on consumers.
The president also pointed to persisting high inflation, income polarization and a stock market rally driven only by market heavyweights, saying the government might need to devise ways to supplement income.