Talking about 'K-Nvidia'? Start by listening to businesses
Published: 06 Mar. 2025, 00:00
The Democratic Party (DP) met with the leadership of the Federation of Korean Industries (FKI) at the National Assembly Wednesday. DP leader Lee Jae-myung stated, "The political sphere must minimize unnecessary obstacles to business activities and ensure that our companies contribute to the nation's wealth creation." Ryu Jin, chairman of FKI, expressed agreement with Lee's emphasis on growth during Lee's New Year's address. Ryu emphasized, "Ultimately, the solution is growth, and for that, corporate investment — the catalyst for growth — must be revitalized." This official meeting between the leader of the DP and the head of FKI, the successor to the Federation of Korean Industries, was the first in nearly a decade, since September 2015. While they only confirmed their differences on key issues such as the Special Semiconductor Act and commercial law, the meeting itself was not without significance.
![Democratic Party (DP) leader Lee Jae-myung(left), and Federation of Korean Industries Chairman Ryu Jin(right), meet at the National Assembly on March 5 to discuss some of the pending issues for Korea's businesses such as the exemption of Korea's chip industry from a 52-hour workweek limit and amendments to the country's Commercial Act. It is the first time in 10 years that the leaders of the DP and the FKI have officially met.[YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/03/06/bbcd3834-15ae-4af5-88c8-782d95618382.jpg)
On the same day, the Bank of Korea (BOK) released national income statistics. Korea's per capita GNI for last year stood at $36,624, a mere 1.2 percent increase from the previous year. While it ranks sixth among countries with populations over 50 million, the figure has remained in the $30,000 range for 11 consecutive years. This brings to mind BOK Governor Rhee Chang-yong's blunt remark that "1 percent yearly growth is our true capability." To break into the $40,000 range, the country must endure painful structural reforms.
During the meeting, there was also mention of the sovereign wealth fund in relation to Lee Jae-myung's recent comments on the so-called K-Nvidia. A few days ago, Lee remarked, "If a company like Nvidia were to emerge in Korea and 30 percent of its shares were publicly owned, we would not have to rely so heavily on taxes." The ruling party fiercely criticized his statement, calling it "a socialist idea" and "a Utopian planned economy."
However, Lee's K-Nvidia remarks are not entirely baseless. Taiwan's TSMC, for example, started as a state-owned enterprise before being privatized. Domestic experts, including Sungkyunkwan University Prof. Kwon Seok-jun, author of "Semiconductor Three Kingdoms," have advocated for national investment in the TSMC model. The government's recently announced 50 trillion won ($37 billion) Advanced Strategic Industry Fund, aimed at investing in cutting-edge industries like semiconductors and AI, also includes equity investments. If state-invested companies perform well and their stock prices rise, the national budget will inevitably benefit.
Despite this, the criticism leveled at Lee and the DP is not without reason. It is difficult to build trust when the party speaks about business, growth and market mechanisms in front of corporations but then advocates pro-labor policies like the Yellow Envelope Act when meeting with unions. Former Socar CEO Lee Jae-woong directly criticized the DP, pointing to the "Tada ban," named after the first car-hailing service launched in Korea, that the party spearheaded, stating, "The DP must first reflect on its past of condemning and obstructing innovative companies." There is a reason why businesses voice their frustrations.
The DP should start by listening to voices from the business sector. There is an old saying: "A politician's credibility should be judged by their actions, not just their words." Rather than appealing with rhetoric, real actions that address corporate pain points will build credibility. If such practical measures accumulate, excessive criticism of the K-Nvidia vision will naturally subside.
Translated using generative AI and edited by Korea JoongAng Daily staff.
Democratic Party (DP) leader Lee Jae-myung(left), and Federation of Korean Industries Chairman Ryu Jin(right), meet at the National Assembly on March 5 to discuss some of the pending issues for Korea's businesses such as the exemption of Korea's chip industry from a 52-hour workweek limit and amendments to the country's Commercial Act. It is the first time in 10 years that the leaders of the DP and the FKI have officially met.[YONHAP]
On the same day, the Bank of Korea (BOK) released national income statistics. Korea's per capita GNI for last year stood at $36,624, a mere 1.2 percent increase from the previous year. While it ranks sixth among countries with populations over 50 million, the figure has remained in the $30,000 range for 11 consecutive years. This brings to mind BOK Governor Rhee Chang-yong's blunt remark that "1 percent yearly growth is our true capability." To break into the $40,000 range, the country must endure painful structural reforms.
During the meeting, there was also mention of the sovereign wealth fund in relation to Lee Jae-myung's recent comments on the so-called K-Nvidia. A few days ago, Lee remarked, "If a company like Nvidia were to emerge in Korea and 30 percent of its shares were publicly owned, we would not have to rely so heavily on taxes." The ruling party fiercely criticized his statement, calling it "a socialist idea" and "a Utopian planned economy."
However, Lee's K-Nvidia remarks are not entirely baseless. Taiwan's TSMC, for example, started as a state-owned enterprise before being privatized. Domestic experts, including Sungkyunkwan University Prof. Kwon Seok-jun, author of "Semiconductor Three Kingdoms," have advocated for national investment in the TSMC model. The government's recently announced 50 trillion won ($37 billion) Advanced Strategic Industry Fund, aimed at investing in cutting-edge industries like semiconductors and AI, also includes equity investments. If state-invested companies perform well and their stock prices rise, the national budget will inevitably benefit.
Despite this, the criticism leveled at Lee and the DP is not without reason. It is difficult to build trust when the party speaks about business, growth and market mechanisms in front of corporations but then advocates pro-labor policies like the Yellow Envelope Act when meeting with unions. Former Socar CEO Lee Jae-woong directly criticized the DP, pointing to the "Tada ban," named after the first car-hailing service launched in Korea, that the party spearheaded, stating, "The DP must first reflect on its past of condemning and obstructing innovative companies." There is a reason why businesses voice their frustrations.
The DP should start by listening to voices from the business sector. There is an old saying: "A politician's credibility should be judged by their actions, not just their words." Rather than appealing with rhetoric, real actions that address corporate pain points will build credibility. If such practical measures accumulate, excessive criticism of the K-Nvidia vision will naturally subside.
Translated using generative AI and edited by Korea JoongAng Daily staff.
with the Korea JoongAng Daily
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