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Lee vows to provide relief through 'bold' fiscal policy at first formal press conference

Published: 03 Jul. 2025, 19:15

SARAH KIM
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President Lee Jae Myung speaks during his first formal press conference marking 30 days in office at the Blue House compound in central Seoul on July 3. [JOINT PRESS CORPS]

President Lee Jae Myung pledged a "proactive and bold" fiscal policy to help improve people's lives and overcome a national crisis in his first formal press conference on Thursday.

"The top priority is to relieve the suffering of the people and create a country that grows and leaps forward again," Lee said in a town hall meeting with Korean and foreign journalists at the Blue House complex in central Seoul, underscoring that a "proactive and bold national finance is more important than ever."

Lee said his government will ensure substantial investments in future industries including AI, semiconductors and renewable energy, as well as in the culture sector.

He called for "technology-led growth," again stressing that he will prepare for a "Kospi 5,000 era" through advancing the capital market. Lee, during his first parliamentary address on policy last week, also promised an economic rebound where the benchmark Kospi stock index rises to the 5,000-point level.

Lee acknowledged the economic challenges faced by Korea, including the looming U.S. tariffs, tensions with North Korea and setbacks posed after a six-month leadership vacuum in the country following ousted President Yoon Suk Yeol's martial law imposition last December.

"I will definitely change the Korea discount into a Korea premium," Lee said. The term "Korea discount" refers to the overall undervaluing of South Korean stocks compared to those outside the country, which is often considered to have been caused by weak shareholder returns and geopolitical risks in the region.

Noting that South Korea's economic growth has been largely driven by international trade, he stressed the importance of diversifying its markets.

"I worked with businesspeople on overseas projects during my time as mayor and governor, and it was very efficient," Lee said, referring to his times heading Seongnam and Gyeonggi. "Since Korea has now become a major country recognized by the international community, I think it would be a great help for our companies, our products and services and our culture to advance overseas."

He called to "pay special attention to diplomacy" to this end, while also de-escalating tensions with North Korea.

President Lee Jae Myung, center, greets reporters after his first formal press conference marking 30 days in office at the Blue House compound in central Seoul on July 3. [JOINT PRESS CORPS]

Lee said for the past 30 days, he has "run fiercely every day, keeping in mind the sincere desires of the people who are weathering the waves of national crisis together."

He pledged to respond to such wishes with "politics of trust that creates real changes in the lives of the people."

Regarding his administration's real estate policy, Lee said that last week's lending regulation is "just a taste" of what is yet to come, and that "there are many other measures to suppress demand besides this one."

He vowed to stabilize the real estate market and protect those wanting to buy homes while curbing real estate speculation. He said such speculation "disrupts the real estate market amid intensified concentration in the metropolitan area."

Lee said he envisions a shift in capital flows, saying it would be "better to move it to the financial market rather than real estate."

He also noted that providing homes is not such about "building new housing in new cities," stressing "there are "also many ways to reuse existing housing sites or utilize existing sites."

President Lee Jae Myung holds his first formal press conference marking 30 days in office at the Blue House compound in central Seoul on July 3. [JOINT PRESS CORPS]

Lee further said he backs sweeping prosecutorial reform, stressing intentions to separate investigatory powers from those for indictment.

He noted the fierce political debate over that issue, including opposition to the separation of investigative and prosecutorial powers during the former liberal Moon Jae-in administration. He said currently, "the need for reforms has only grown," calling it "a case of reaping what was sown."

He said such reform could come before the Chuseok holiday in October, citing it as the timeline set by leaders of the ruling Democratic Party (DP).

Lee also acknowledged that the conflict between the government and doctors over the preceding Yoon government's decision to increase the medical school admissions quota is not an easy one to solve. However, he said that he is hopeful in making progress with the medical community through dialogue.

Even while encouraging bipartisan cooperation and joint governance, Lee indicated he will not be making unconditional concessions to the opposition People Power Party (PPP), calling to "distinguish between compromise and collusion."

Lee promised to actively reflect the people's voice in state affairs and called to "move toward a real nation where the people are the masters through direct and regular communication with the people" and "actively reflecting it in state affairs."

BY SARAH KIM [[email protected]]