President Lee Jae-myung Addresses Economic Concerns at Emergency Task Force Meeting

On July 30, 2025, President Lee Jae-myung (이재명) held the third meeting of the Emergency Economic Inspection Task Force (비상경제점검TF) at the presidential office in Yongsan, Seoul. During the meeting, he expressed concerns that excessive economic penalties are causing hesitation among investors in South Korea. He noted that the misuse of embezzlement laws is stifling corporate activities and emphasized the need for institutional reforms to address this issue.

President Lee announced the immediate activation of a task force aimed at rationalizing economic penalties to prevent them from hindering business operations. He set a clear goal of achieving a 30% reduction in these penalties within a year through legislative efforts in the upcoming regular National Assembly session. He stressed the importance of ensuring corporate autonomy and questioned whether imposing criminal sanctions alongside economic and financial penalties aligns with international standards.

Addressing regulatory issues that limit corporate activities, President Lee committed to eliminating unnecessary regulations that are outdated or overly convenient for administrative purposes. He promised swift actions to facilitate creative business activities through regulatory rationalization.

The President also highlighted the need for innovative regulatory reforms and sector-specific development strategies to foster future industries, particularly in advanced sectors like artificial intelligence (AI). He called for a rapid transition of South Korea's economic ecosystem towards renewable energy and AI-driven industries in response to climate change.

President Lee stated that his government would adopt a practical market-oriented approach to restore corporate vitality and expand investment opportunities. He announced plans to establish a national fund exceeding 100 trillion won, aimed at investing in strategic projects that will drive growth over the next 20 years. He reiterated his commitment to supporting and encouraging corporate activities to create opportunities for growth.

Furthermore, President Lee pointed out the need to rethink South Korea's growth strategy, particularly addressing the issue of unbalanced growth. He acknowledged that while this strategy had previously led to rapid economic and industrial growth, its negative consequences are now hindering sustainable development. He emphasized that achieving regional balanced development has become an essential survival strategy for growth and pledged to alleviate polarization, which he identified as the root of many of the country's most serious issues.