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Korea Herald
3 days ago
- Business
- Korea Herald
[Editorial] A vision or a venture?
Lee charts sweeping 5-year policy plan, betting on bold reforms despite hurdles The Lee Jae Myung administration on Wednesday unveiled a sweeping five-year national governance blueprint, a document that blends bold reforms with cautious caveats. Presented by the State Affairs Planning Committee just 70 days into his presidency, the plan is framed by Lee not as a fixed policy, but as a 'set of proposals,' signaling a pragmatic approach in an era of economic uncertainty and geopolitical flux. The blueprint outlines 123 national tasks across five strategic objectives. Its execution would require an estimated 210 trillion won ($152 billion) in additional fiscal spending over five years, marking an unapologetically expansionary stance for a government facing demographic headwinds and a sluggish economy. One of its most contentious reforms is a proposed constitutional amendment to replace the single five-year presidential term with a four-year, two-term system, while also curbing presidential authority. The initiative seeks to address the concentration of executive power that has long fueled political instability, yet any amendment will require bipartisan consensus, a rare commodity in South Korean politics. The blueprint also targets institutional restructuring in law enforcement. It calls for the disbandment of the Supreme Prosecutors' Office by 2030, splitting its functions and abolishing the police bureau to bolster political neutrality and decentralize authority. Such reforms are bound to provoke fierce pushback from entrenched interests. Economic policy centers on a pivot toward next-generation industries, most notably artificial intelligence. The government aims to position South Korea as one of the world's top three AI powers by 2030, building an 'AI expressway' that integrates advanced computing infrastructure into industrial and public sectors. This technological push supports targets for 3 percent economic growth and the Kospi index reaching 5,000 points. The cultural sector receives equal emphasis. With a goal of expanding the Korean cultural industry to a 300 trillion won market and attracting 30 million inbound tourists annually by 2030, the plan includes 10 trillion won in policy financing to sustain the momentum of South Korea's global cultural influence. Social policy initiatives aim to fortify the safety net. Child allowances would be extended to all children under 13 by 2030, while out-of-pocket nursing care costs would be sharply reduced. These measures, targeting low birth rates and an aging society, are designed to preserve social cohesion amid economic transformation. National security policy sets an ambitious goal: regaining wartime operational control, or OPCON, from the United States within Lee's term, subject to readiness conditions agreed in 2014. While the administration sees this as an essential step toward self-reliance, US military officials have warned against any accelerated timetable that might compromise preparedness. Inter-Korean relations are poised for a shift from confrontation to dialogue, with a focus on restoring communication channels and fostering peaceful coexistence. Diplomatically, the government pledges a pragmatic, interest-driven approach: strengthening but evolving the US alliance, seeking forward-looking ties with Japan, deepening strategic engagement with China and managing relations with Russia constructively. The plan's breadth reflects an attempt to balance domestic reform with geopolitical agility. Yet its ambition is matched by the scale of the political and fiscal challenges it faces. Lee likens the spending to sowing seeds for future harvest, a metaphor that underscores both the optimism and the risk of this approach. Without disciplined governance and transparency, such vast outlays could become a liability rather than a legacy. Whether this blueprint becomes a turning point for South Korea will depend less on the audacity of its goals than on the administration's skill in pragmatic execution — forging consensus on divisive reforms, maintaining fiscal discipline and adapting to shifting global realities. The next five years will reveal whether this vision is the foundation of a more resilient nation or a bold venture that falters under its own weight.
Korea Herald
4 days ago
- Politics
- Korea Herald
Lee proposes wartime OPCON transfer by 2030
Proposal includes restoring inter-Korean relations, pursuing pragmatic diplomacy The transition of wartime operational control from the United States to South Korea has been designated as a key national security priority in the Lee Jae Myung administration's five-year governance plan that was unveiled Wednesday. According to the State Affairs Planning Committee — a de facto transition team tasked with drafting the administration's long-term agenda — the government aims to establish and implement a road map for the OPCON transfer during Lee's term. The plan calls for strengthening South Korea's operational planning and command capabilities to enhance deterrence against North Korea, while reaffirming that the transition will proceed in close coordination between the South Korea and US alliance. The OPCON transfer has long been a point of discussion between Seoul and Washington. South Korea has not held wartime operational control of its troops since the outbreak of the Korean War in 1950, when the authority was relinquished to the United Nations Command. It was later transferred to the South Korea-US Combined Forces Command, which remains under the leadership of a US four-star general. In 1994, under the liberal Kim Young-sam administration, South Korea regained peacetime operational control. However, wartime command authority continues to reside with the US under the current Combined Forces Command structure. With President Lee expected to hold his first summit with US President Donald Trump later this month in Washington, the OPCON issue is likely to resurface as a key agenda item. Broader alliance matters, including the level of the US troop presence in South Korea and defense cost-sharing, are also expected to be discussed. Lee, who attended the committee's briefing session, stressed that the committee's overall five-year plan should not be seen as finalized government policy, but as a set of recommendations. "These are not a confirmed plan," Lee said. "It is a set of proposals outlining the desirable direction of state affairs. We will take them into account, and they may be revised through the process of consultation and coordination." He added that the government would "thoroughly and swiftly review" the committee's proposals and implement "as much as possible within feasible bounds." Caution remains within the military. Gen. Xavier Brunson, commander of the South Korea-US Combined Forces Command, reiterated last week that the transition must proceed under the agreed conditions. "If we choose to take shortcuts, that could endanger the readiness of the force here on the peninsula," Brunson said during a press conference at Camp Humphreys in Pyeongtaek, Gyeonggi Province. "The hope is — the hope has always been — that OPCON transfer would happen at some point in the future when the conditions are met." In addition to OPCON, the administration plans to upgrade South Korea's three-axis defense system, which was developed in response to growing threats from North Korea. The system consists of the Kill Chain preemptive strike platform, the Korea Air and Missile Defense system and the Korea Massive Punishment and Retaliation strategy. To address the steadily shrinking number of military personnel, the government plans to restructure military branches, expand the use of civilian resources and improve the readiness of reserve forces. It also pledged to support the defense industry by fostering high-tech sectors such as artificial intelligence, drone systems, advanced engines and space technologies, as well as by pursuing innovation in weapons acquisition. Meanwhile, the blueprint also calls for the dissolution of the Defense Counterintelligence Command, with its core functions to be transferred to other agencies. The unit, tasked with countering North Korean espionage, has come under scrutiny for its role in former President Yoon Suk Yeol's martial law declaration on Dec. 3, 2024. It was reported to have attempted to locate lawmakers and gain access to the National Election Commission during the incident. Inter-Korean policy, pragmatic diplomacy The blueprint also outlines a major shift in inter-Korean policy, moving away from confrontation and toward reconciliation. The government aims to restore inter-Korean relations by reopening communication channels, resuming talks and civilian exchanges and restarting humanitarian cooperation — a broader effort that, according to the committee, also includes pursuing a basic agreement between the two Koreas, modeled after the 1972 treaty between East and West Germany. The committee emphasized that any path toward unification must be grounded in public consensus, pledging to broaden civic participation in policymaking, promote peace and unification education and foster a more balanced public perception of North Korea. In broader diplomacy, the Lee administration promised a pragmatic approach based on national interest. The government seeks to evolve the alliance with the US into a future-oriented comprehensive partnership, pursue forward-looking relations with Japan, deepen strategic ties with China and manage relations with Russia in a stable and constructive manner. The plan also reaffirmed Seoul's commitment to expanding its outreach to G7 nations, building upon the New Southern and New Northern policies, and to strengthening engagement with countries in the Global South.
Korea Herald
4 days ago
- Business
- Korea Herald
Constitutional reform set as top agenda for Lee administration
Committee proposes disbandment of Supreme Prosecutors' Office by 2030, sets AI as future growth engine The State Affairs Planning Committee, acting as a de facto transition team for President Lee Jae Myung, announced Wednesday that amending the Constitution will be the top priority among 123 agenda items in his policy blueprint. The committee added that the proposed reform aims to reinforce the constitutional principle of popular sovereignty. Also outlined in the Lee administration's blueprint were a reform of the prosecution, as well as ways to increase South Korea's potential economic growth rate to 3 percent, in large part through a wider adoption of artificial intelligence. This would be achieved by leveraging the country's human talent, along with more than 50,000 graphics processing units, a next-generation power grid and a transition to renewable energy. Some 210 trillion won ($151.8 billion) in fiscal spending will be directed over the next five years to achieving the 123 policy goals. "Ending the 1987 Constitution, (the Lee administration) will push to amend the Constitution based on citizen participation to open a new era," Rep. Lee Hae-sik of the ruling Democratic Party of Korea, a member of the committee, told a briefing to the nation held at Cheong Wa Dae, the former presidential compound in Seoul. The committee did not elaborate on the direction or a timeframe of the amendment, but Lee has previously hinted at allowing South Korean presidents to serve two four-year terms instead of the current, single five-year term. During the presidential campaign, Lee and his Democratic Party of Korea suggested introducing a new presidential system through constitutional reform that the party said would curtail the power of the South Korean president. Under the proposal, presidents would be allowed to serve two four-year terms, with the re-election contest after the first term serving as a referendum on the sitting president's performance. In addition to the change in the presidential term limit, Lee, during his presidential campaign, floated a new system of stronger constitutional checks on presidential power: Parliament would recommend candidates for prime minister, and the president's exercise of veto power would be restrained. Following his inauguration in June, Lee expressed an intent to carry out constitutional reform as South Korea marked the 77th Constitution Day in July. Lee also wrote on Facebook that the newly amended Constitution would uphold the spirit of the Gwangju Democratic Uprising in May 1980 and encompass the greater fundamental rights of each citizen and the greater local autonomy. If implemented as planned, the constitutional amendment would be the first since the current Constitution was ratified in 1987, which introduced a single five-year presidential term. Many of Lee's predecessors -- Moon Jae-in, Park Geun-hye, Lee Myung-bak and the late Roh Moo-hyun -- have floated constitutional reform, but none of their proposals bore fruit. Disgraced former President Yoon Suk Yeol also expressed a willingness to entrust his presidential powers to the then-ruling People Power Party in December, after his sudden imposition of martial law threw South Korea into political turmoil. Prosecutorial reform Also among the 123 policy goals of the Lee administration is its widely-anticipated push for a major reform to curb the power of South Korean law enforcement institutions such as the prosecution and police. By 2030, the Supreme Prosecutors' Office will be disbanded, and the organization will be split into two. One will be dedicated to investigating serious crimes while the other will be dedicated to filing indictments of criminal suspects. This is largely in line with the liberal bloc's claim that the prosecution's power to both investigate criminal cases and bring suspects to court has often led to politically motivated persecutions. The police will also strive for political neutrality in part by abolishing the police bureau at the Ministry of Interior and Safety, which was established in 2022 during former President Yoon's term, according to the committee. Also by 2030, South Korea will champion the mass adoption of AI, with the goal of becoming a "top-three AI powerhouse," according to the committee. Furthermore, an "electricity highway" will be built along the western coast of the Korean Peninsula, so that industrial complexes powered by renewable energy, aligned with initiatives such as RE100, can thrive along the new power grid infrastructure. A leap forward through such technological advancements, coupled with blueprints for inclusive economic growth and market fairness, will allow South Korea to break away from the low-growth trap and achieve a potential economic growth rate of 3 percent during Lee's term. The State Affairs Planning Committee, currently led by Lee Han-joo, a longtime aide to Lee, will wrap up its two-month run on Thursday. According to the committee, the policy accomplishment will be managed jointly through the presidential office, the Office of the Government Policy Coordination and a newly established presidential committee on national futuristic strategy.
Korea Herald
4 days ago
- Business
- Korea Herald
Korea launches megagrowth plan with AI expressway, energy overhaul
The State Affairs Planning Committee unveiled President Lee Jae Myung's five-year blueprint for national governance on Wednesday, vowing to implement sweeping initiatives to reinvigorate the slowing economy through next-generation industries and a sustainable energy transition. In a policy briefing, the committee outlined an innovation economy strategy aimed at positioning Korea as a global leader in technology, with artificial intelligence at its core. Key measures include building an 'AI expressway,' fostering an independent AI ecosystem, securing leadership in next-generation AI semiconductors and foundational technologies and cultivating world-class AI talent. To bolster trust in AI, the government plans to strengthen personal data protection, prevent misuse and expand the open release of public data, with the ultimate goal of creating the world's leading AI-driven government. Under the plan, Korea will expand its research and development budget, support long-term basic research and systematically train and attract top talent to place the nation among the world's top five in science and technology. Strategic industries such as AI and biohealth will serve as new growth engines, while innovation will be accelerated in flagship sectors including semiconductors and secondary batteries. The blueprint also calls for energizing the economy through greater venture capital investment, intensive startup incubation and a growth ladder program to help small and medium-sized enterprises evolve into global players. To spur regional innovation, regulations in key fields — including AI, biohealth and renewable energy — will be eased or removed, and large-scale 'megaspecial zones' will be designated for concentrated development. The administration aims to mobilize a 100 trillion won ($72 billion) national growth fund to channel investment into future industries, while nurturing a financial ecosystem where ventures and SMEs can drive innovation. Capital market transparency will be enhanced with measures such as a one-strike policy for unfair trading and legislative reforms to boost investor confidence. On the energy front, the government plans to swiftly establish an 'energy expressway' to help industries achieve RE100 — the goal of sourcing 100 percent renewable electricity — while advancing carbon neutrality and climate resilience across the economy. Wednesday's announcement set out five policy goals, 23 strategic initiatives and 123 national tasks, each backed by detailed action plans developed over the past two months.
Korea Herald
14-07-2025
- Business
- Korea Herald
Korea mulls formal role for secretive F4 policy talks
South Korea is poised to transform its clandestine macroeconomic and financial meetings involving top policymakers into a transparent, institutionalized body, sparking debates over the potential implications for decision-making agility and crisis response capabilities. According to sources on Monday, the government, through State Affairs Planning Committee, is proposing to establish a formal legal framework that would explicitly define the purpose, roles and responsibilities of the so-called F4 meeting, a weekly gathering of the heads of the Ministry of Economy and Finance, the Bank of Korea, the Financial Supervisory Service and the Financial Services Commission. The F4 meeting was launched by former Finance Minister Choo Kyung-ho in 2022, but similar forums have been operating for several decades. Historically, governments have maintained confidentiality over such discussions, partly to prevent sensitive issues from becoming public and provoking market upheaval. The move is designed to increase transparency by providing public access to agenda items and meeting minutes, positioning the body as a central coordinating authority across various economic policy domains. Currently, F4 meetings are conducted without publicly disclosing schedules, topics or contents. The meeting has been playing a crucial role as an informal but essential crisis management and coordination mechanism. Its significance lies in its ability to rapidly respond to market turbulence and systemic risks. Past instances include its handling of liquidity concerns during the Lego Land crisis in 2018 and the swift response to market shocks during the fallout from the Silicon Valley Bank collapse. The forum also serves as a platform for early policy discussions, helping policymakers reach consensus before implementing measures that could impact markets. In December, amid a sharp depreciation of the won and a significant decline in the stock market following former President Yoon Suk Yeol's declaration of martial law, officials convened a series of F4 meetings to deliver reassuring messages to international markets and stabilize sentiment during a period of heightened volatility. The government has also come under scrutiny amid claims that, immediately after Yoon's emergency declaration, F4 meetings discussed follow-up measures related to the martial law order. This suspicion has fueled calls for giving the forum formal legal status to enhance transparency and oversight. Experts suggest that while making these discussions public could democratize policymaking and bolster legitimacy, it might also hinder the government's ability to act decisively in volatile economic conditions. While laws and policies often become clearer during implementation, revealing draft plans still in discussion to the markets and media could lead to adverse reactions, according to Jun Kwang-woo, chairman of the Institute for Global Economics. He also participated in F4-like meetings during his tenure as the first chairman of the country's Financial Services Commission from 2008 to 2009. 'Premature disclosure of deliberations on sensitive issues could ignite unnecessary speculation and market instability,' he said. Such a move could improve coordination, but it must be carefully managed to avoid undermining policy flexibility. 'If the F4 meeting is elevated to a central macro-financial overseeing body, communication between the related government agencies will be strengthened, helping to prevent policy discrepancies,' said Joo Won, head of the Economic Research Division at the Hyundai Research Institute.
