Lee vows to secure 'absolute competitiveness' in advanced technologies in his 2nd year
President Lee Jae Myung speaks during a press conference at Cheong Wa Dae in Seoul, Monday, marking the first anniversary of his inauguration. Yonhap
President Lee Jae Myung said Monday the government will work to secure "absolute competitiveness" in advanced technologies to nurture the country into an industrial powerhouse.
The president made the remarks while outlining his policy vision and goals for his second year in office at a press conference marking the first anniversary of his inauguration on June 4 last year.
"By mobilizing all government and private-sector resources, (the government) will secure absolute competitiveness in the advanced technology sector," Lee said, adding the government will soon unveil a large-scale investment project to that end.
The planned investment project will bring about a transformative change in the country's growth strategy, the president noted.
The government will also explore new sectors, besides the semiconductor industry, that can serve as growth engines for future generations, he added.
Lee, however, noted that "fruits of growth" should not be limited only to certain companies, regions or sectors.
"The results and opportunities generated through the resources of the entire community should be broadly spread to small and medium-sized firms, startups, regions across the country and all sectors, leading to changes that can be felt by all people," the president said.
He also pledged a stern crackdown on irregularities and injustices, including stock price manipulation and real estate-related crimes, while vowing to consistently pursue structural reforms aimed at dismantling vested interests.
On the national security front, the president said he will make utmost efforts to achieve "concrete results" in the country's push to secure nuclear-powered submarines and regain wartime operational control of troops from Washington.
The government will also unwaveringly pursue its policy of seeking peace and security on the Korean Peninsula, as well as peaceful coexistence and shared prosperity with North Korea, the president said.
Asked about record profits at semiconductor giants, such as Samsung Electronics, the president stressed that the issue of using increased tax revenues stemming from increased corporate earnings is a completely different issue from possible utilization of corporate earnings or imposing additional taxes on such profits.
Lee noted foreign firms and local businesses alike may stop investing here or even flee the country should the government try to impose additional taxes on their increased profits, stressing the need for a "cautious approach."
"It is a difficult issue" but one that cannot be ignored altogether, he said, adding the issue may require and soon lead to international discussions.
The remarks came after a labor union at Samsung Electronics recently reached a wage agreement allowing a substantial bonus package for chip employees, following months of threatening a general strike amid booming earnings from the AI-related semiconductor business.
Asked about a well-anticipated rise in tax revenues from the semiconductor boom, the president said such excess taxes may be best utilized by investing for future generations, while noting that handing them out or paying off national debts may be "dumb" moves.
As part of efforts to curb runaway home prices, Lee said that the government may introduce real estate tax reforms as early as next month and a new housing supply plan in the near future.
The president signaled a possible reform of the homeownership tax, saying, "In our nation, the holding tax (on homes) is generally low. It may not be burdensome for people to accumulate (homes)." He added that the measure could encourage homeowners to sell their properties.
Referring to the strong performance of the benchmark Korea Composite Stock Price Index (KOSPI) in recent months, the president said he still believes Korean stocks remain slightly undervalued.
"Stock prices have risen faster than I expected, but I still think they are slightly undervalued," Lee said, citing reduced geopolitical uncertainties, greater policy predictability and efforts to eradicate market manipulation as factors that could further support the market.
Lee had pledged during his presidential campaign to lift the KOSPI to the 5,000-point level. The index was trading in the mid-2,000 range before he took office and later surpassed the 8,000-point mark before retreating on Monday.
He also slammed the shortages of ballot papers reported at some polling stations during local elections last week, calling them a "very serious problem."
The president noted a prompt investigation will be conducted into the National Election Commission to determine whether the incident was intentional or the result of structural problems.
Asked about his recent remarks criticizing Israel's seizure of aid vessels carrying South Korean humanitarian workers to the Gaza region, the president said, "My view is that any issues related to the human rights of South Korean citizens or the country's sovereignty cannot be overlooked."
Delving into North Korean nuclear issues, Lee stressed the importance of pursuing the short-term goal of halting Pyongyang's nuclear and missile programs as part of the broader objective of denuclearizing the Korean Peninsula.
Pyongyang is producing enough nuclear materials to build up to 20 nuclear weapons per year, while its development of intercontinental nuclear missiles (ICBM) is nearing completion, Lee warned.
Halting further advances in the programs would benefit both the international community and the Korean Peninsula, he added.
The president proposed three objectives for short-term negotiations with North Korea: freezing the production of nuclear materials, halting the development of ICBM technology and prohibiting exports of nuclear materials.
"Over the long term, (the Korean Peninsula) should move toward denuclearization," Lee said.