In the presidential election on June 3, Lee Jae-myung of the Democratic Party of Korea and Kim Moon-soo of the People Power Party both chose 'economy' as their top promise. However, the details were different. Candidate Lee highlighted new growth engines such as artificial intelligence (AI) and K-content, while Candidate Kim emphasized ensuring freedom for corporate activities. The titles of their pledges were 'An economic powerhouse leading the world' (Lee Jae-myung) and 'A country favorable for corporations' (Kim Moon-soo).
Candidate Lee Jun-seok of the Reform Party proposed 'government efficiency' as the top pledge. He presented a goal to merge the current 19 ministries into 13 and solve the issue of administrative partition.
◇ Both the Democratic Party and the People Power Party choose 'economy' as their top promise… Focused support for AI
According to the '10 major policy pledges' announced by the Democratic Party on the 15th, Candidate Lee Jae-myung envisioned 'An economic powerhouse leading the world' along with specific measures like 'A leap to become a global AI powerhouse' and fostering K-content and national defense.
He said he would increase the AI budget to the level of advanced countries and attract private investment of 100 trillion won. He also mentioned plans to secure more than 50,000 high-performance graphic processing units (GPUs) and create a national AI data aggregation cluster. He proposed measures to revitalize the AI convergence industry through regulatory exceptions.
To stimulate private investment, he proposed bold tax cut measures such as income and corporate tax reductions on investment funds.
He also noted that he would promote the establishment of a control tower for expanding support in the content sector and K-defense exports.
In the labor sector, he proposed the introduction of a '4.5-day work week' as a social agenda. His pledge is to reduce working hours to below the average of the Organization for Economic Cooperation and Development (OECD) by 2030. He said he would codify the prohibition of 'blanket wage systems' in the Labor Standards Act and re-promote the 'Yellow Envelope Law' (amendments to articles 2 and 3 of the Trade Union Act) that was blocked by a veto.
Candidate Kim Moon-soo's top pledge is 'A country favorable for corporations.' He presented 'freedom-led growth' as the growth discourse. The core is to maximize the autonomy and creativity of the private sector and corporations.
He stated he would create a world-class investment environment and provide preferences such as tax and fee reductions for excellent job-creating companies.
He also mentioned that he would enact the 'Basic Law on Economic Innovation' to eliminate regulations in new technology and new industry sectors.
He expressed his ambition to expand the share of nuclear power to reduce energy costs for corporations and quickly finalize trade negotiations with the United States to alleviate economic uncertainties.
Both candidates presented these grand plans, but they did not come up with specific financial securing measures. Candidate Lee said he would cover it with adjustments to government expenditure structures and the projected increase in total revenue from 2025 to 2030, while Candidate Kim claimed there would be no additional financial needs by utilizing existing resources.
◇ Divergence over nuclear power: Lee vs. Kim… reduce nuclear vs. focus on expansion
Candidate Kim's second pledge is 'AI and energy powerhouse.' His plan to establish a 100 trillion won AI fund resembles the Democratic Party's pledge. Candidate Kim emphasized expanding nuclear power by smoothly advancing six large nuclear plants and promoting the commercialization of Korean small modular reactors (SMRs).
In the energy sector, Candidate Kim and Candidate Lee's positions differed sharply. Candidate Lee maintained a negative view on nuclear power.
Candidate Lee noted that he would accelerate the transition to renewable energy, focusing on joining RE100 (Renewable Energy 100%) led by the EU, including the UK, instead of the current government's zero-carbon energy (CFE) initiative. CFE and RE100 show opposing positions on recognizing 'nuclear power' as a zero-carbon source. He stated that while he would slow down the rapid 'nuclear phase-out' pursued by the Moon Jae-in administration, he would maintain a national policy of reducing nuclear power.
Regarding support for small businesses, both Candidates Lee and Kim promised to expand support. Candidate Lee noted he would promote consumption centered on local currency (local love gift certificates), while Candidate Kim proposed personalized burden relief measures such as activating the Onnuri gift certificate and reducing electricity bills.
◇ Lee Jun-seok presents the small government theory… Inducing reshoring and ensuring clear local autonomy
Candidate Lee Jun-seok's key pledge is to actively promote a small government and reshoring. He stated he would first merge the Ministry of Education and the Ministry of Science and ICT into the Ministry of Education and Science, abolish the Ministry of Gender Equality and Family, and transfer relevant duties to the Ministry of Welfare and the Ministry of Interior (Ministry of Public Administration and Security), thus reducing the current 19 ministries to 13. He also noted plans to reform the current economic and social vice-minister system and introduce a system of three vice-ministers focusing on security, strategy, and society. His promise also included reducing the president's power.
Candidate Lee Jun-seok's second pledge is 'Returning factories from China and Vietnam back to Korea.' He proposed that if domestic corporations that moved production facilities abroad return, they could apply a tiered minimum wage for foreign workers for up to 10 years to reduce labor costs and simplify the procedures for foreign laborers entering the country.
In terms of decentralization, he proposed to reduce the current corporate tax national portion by 30% and fully convert the reduced amount into local taxes to enhance the local financial independence. He also mentioned delegating the authority to finally determine the minimum wage to local governments to reflect regional characteristics.
The Reform Party also presented its own plan for pension reform. Candidate Lee Jun-seok stated he would separate the national pension into 'old pension' before the reform and 'new pension' after the reform to establish a pension system where 'what you put in, you must receive.' He also proposed a 'Dundun Start-up Fund' promise, allowing young individuals aged 19 to 34 to use up to 50 million won at a fixed interest rate of 1.7%.