South Korean President Lee Jae Myung on Monday, 8 June pledged that his government would secure 'absolute competitiveness' in advanced technologies, positioning South Korea as a next-generation industrial powerhouse. The remarks came at a press conference in Seoul marking the first anniversary of his inauguration on 4 June last year, where he laid out his policy vision and priorities for his second year in office.

The Technology Push

Lee announced that the government would soon unveil a large-scale investment project aimed at mobilising all government and private-sector resources toward advanced technology leadership. 'By mobilizing all government and private-sector resources, (the government) will secure absolute competitiveness in the advanced technology sector,' he said, adding that the planned project would bring about a 'transformative change' in the country's growth strategy.

Beyond semiconductors — currently South Korea's dominant export engine — the president said his administration would actively identify new sectors capable of serving as growth engines for future generations. This signals a deliberate effort to diversify the country's industrial base rather than rely solely on chip exports.

Inclusive Growth and Structural Reform

Lee stressed that the benefits of economic growth should not be concentrated among large conglomerates, specific regions, or dominant 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,' he said.

The president also pledged a firm crackdown on financial irregularities, including stock price manipulation and real estate-related crimes, while committing to structural reforms aimed at dismantling entrenched vested interests.

National Security and Korean Peninsula Policy

On defence, Lee said his government would pursue 'concrete results' in efforts to acquire nuclear-powered submarines and regain wartime operational control of South Korean troops from Washington — a long-standing strategic objective for Seoul. He reaffirmed the government's commitment to peace and security on the Korean Peninsula, alongside a policy of peaceful coexistence and shared prosperity with North Korea.

Semiconductor Windfall and Tax Debate

Asked about record profits at semiconductor giants such as Samsung Electronics Co., Lee drew a careful distinction between increased tax revenues stemming from higher corporate earnings and any proposal to levy additional taxes on those profits. He warned that foreign and domestic firms alike could halt investment or relocate if the government imposed extra taxes on their gains, urging a 'cautious approach.'

Lee suggested that windfall tax revenues from the semiconductor boom could be best deployed by investing for future generations, describing both blanket cash handouts and debt repayment as potentially 'dumb' moves. He acknowledged it is 'a difficult issue' that may soon require international discussions. Notably, this comes after a labour union at Samsung Electronics recently secured a substantial wage and bonus agreement for chip employees following months of threatened strike action amid booming AI-driven semiconductor earnings.

Housing and Real Estate Reforms

To address surging home prices, Lee indicated that real estate tax reforms could be introduced as early as next month, alongside a new housing supply plan in the near future. The announcements signal that domestic affordability pressures remain a central political concern heading into the second year of his presidency.