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Lee’s conservative turn faces questions of credibility

Published: 23 Apr. 2025, 00:00

Democratic Party presidential contender Lee Jae-myung attends a policy roundtable on capital market revitalization held at the Korea Financial Investment Association in Yeouido, western Seoul on April 21. [KIM SEONG-RYONG]

Lee Jae-myung, the Democratic Party’s presidential contender, has rolled out a series of pro-business and centrist policies in recent weeks, signaling a noticeable shift to the right ahead of the June 3 snap election. On Tuesday, he announced a climate policy calling for the phaseout of coal power by 2040, coupled with a proposed energy mix centered on nuclear power and renewables — a notable break from the Moon Jae-in administration’s antinuclear stance.

This latest policy joins a growing list of business-friendly pledges. Earlier, Lee unveiled a plan to invest over 100 trillion won ($72.2 billion) in the artificial intelligence sector. His newly launched campaign think tank, “Growth and Integration,” proposed a “3-4-5 strategy,” aiming for 3 percent potential growth, elevating Korea into the top four global exporters, and reaching $50,000 in per capita income by 2030.

On Sunday, Lee posted on social media that he would “resolve the Korea Discount with recovery and growth,” pledging to push the benchmark Kospi index to 5,000 — a promise he had also made during his previous presidential run.

Given the Democratic Party’s past legislative focus on increasing corporate regulation during the Yoon Suk Yeol administration, Lee’s shift toward pro-business rhetoric marks a departure from party orthodoxy. However, whether the move reflects a genuine policy shift or a short-term electoral tactic remains in doubt.

Skepticism stems from Lee’s past record. During the last presidential campaign, he floated tax cuts on real estate and other moderate proposals, only to abandon them under pressure from hard-liners in his own party after the election. The perception that his rightward turn was merely strategic damaged his credibility.

Doubts resurfaced this week after Lee, at a financial investment roundtable in Yeouido, vowed to reintroduce a controversial commercial law revision. The bill, which the Democratic Party attempted to push through last month, would have expanded directors’ fiduciary duty to cover both the company and its shareholders. Acting President Han Duck-soo vetoed the bill, citing concerns about excessive litigation. While the goal of improving corporate governance is widely supported, the administration has argued that reform should begin with the Capital Markets Act, which is more relevant to listed firms.

Lee’s renewed support for the stricter bill appears inconsistent with his professed commitment to corporate-led growth. Such contradictions fuel concerns that his economic platform is more political than principled.

From left, Lee Jae-myung, Kim Kyoung-soo and Kim Dong-yeon greet Democratic Party members and delegates at Cheongju Gymnasium in North Chungcheong on Saturday. A regional primary to select the final nominee to run for presidency from the party was held Saturday in the Chungcheong region. [NEWS1]

The viability of Lee’s pro-business agenda will likely hinge on his ability to resist internal opposition. Earlier this year, he expressed sympathy with calls to ease Korea’s 52-hour workweek — a longstanding demand from the semiconductor industry — only to retract his comments amid backlash from progressive lawmakers.

Without a clear break from the Democratic Party’s past regulatory reflexes — such as its backing of the “Yellow Envelope Act” and support for the Tada ride-hailing ban — Lee’s economic pledges may ring hollow. His vision of a 5,000-point Kospi could remain a mirage unless he proves willing to chart a different course.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.