Lee Jae-myung proposes 5 trillion won investment in AI, faces socialism criticism

Lee Jae-myung, the leader of the Democratic Party of Korea, revealed plans to create sovereign wealth funds or national funds to invest in the artificial intelligence (AI) sector and share the results. In response to criticism from the ruling party that this plan is 'socialism,' Lee called it 'ignorant thinking.'

On the morning of the 5th, during a Supreme Council meeting held at the National Assembly, Lee stated, 'If private corporations cannot bear large-scale investments, which may pose problems in international competition, then the entire population can invest and share the results through sovereign wealth funds or national funds.'

Lee noted, 'Just to secure 100,000 GPUs (graphics processing units) would cost an enormous amount of 5 trillion won,' adding, 'The People Power Party talks about socialism or communism, but with that level of knowledge, it will be impossible to navigate the challenges of this advanced era.'

He continued, 'Even Taiwan's TSMC initially had a 48% government equity stake, and sovereign wealth funds like Singapore's Temasek are already well known,' and asked, 'How can the Republic of Korea handle governance with such ignorant thinking that it cannot invest in future advanced industries?'

Lee further emphasized, 'Even now, we need to change our thinking and recognize that not only government financial investment but also national-level investment in future advanced industries and the AI sector are essential,' asserting, 'The future advanced industries, unlike in the past, will require large-scale investments.'

Lee proposed a discussion forum on AI for the People Power Party. He expressed, 'It would be beneficial to have an opportunity to openly discuss issues like the future of the AI industry,' suggesting, 'It would be good if the Policy Committee takes the lead, and any format would be fine, so let’s have a forum at some time.'

On that day, the ideas for sovereign wealth funds and national funds began on the 2nd when Lee appeared on the YouTube channel of the Democratic Research Institute, the Democratic Party's policy research organization. In the YouTube video, Lee remarked, 'If a company like Nvidia had emerged in Korea, perhaps 70% would be held by the private sector and 30% would be shared among the entire population, without necessarily relying on taxes.'

Presidential candidates from the ruling party uniformly criticized Lee. Oh Se-hoon, the mayor of Seoul, pointed out on Facebook on the 3rd, 'This reveals a fundamental societal plan to monopolize the management of corporate performance, wrapped in right-wing rhetoric and leaning toward socialism.' Spokesperson Ham In-kyung of the People Power Party also commented, 'It is no different from a fanciful planned economy model that completely ignores the realities of the economy and market principles.'