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

On July 30, 2025, President Lee Jae-myung (이재명) led the third meeting of the Emergency Economic Inspection Task Force (비상경제점검TF) at the presidential office in Yongsan, Seoul. During the meeting, he highlighted concerns that excessive economic penalties are causing hesitation among investors in South Korea. He noted, 'There are reports that people are afraid of going to prison for mismanagement in corporate activities, which is discouraging domestic investment.'

President Lee emphasized the need for institutional reforms to address the misuse of embezzlement laws that are stifling corporate activities. He announced the immediate activation of a task force aimed at rationalizing economic penalties, with a clear goal of reducing them by 30% within a year during the upcoming regular National Assembly session. He questioned whether imposing criminal sanctions in addition to economic and financial penalties aligns with international standards.

Addressing regulatory issues, President Lee stated that unnecessary regulations, particularly those that are outdated or overly convenient for administration, would be eliminated or eased to foster creativity in business operations. He committed to swift actions for regulatory rationalization.

He also called for the development of innovative regulatory reforms and sector-specific growth strategies to ensure that advanced industries, including artificial intelligence (AI), can thrive. He stressed the importance of transitioning South Korea's economic ecosystem towards renewable energy and AI-driven industries in response to climate change.

President Lee declared that his government would embody practical market-oriented policies, aiming to restore corporate vitality and expand investment opportunities. He proposed the establishment of a national fund exceeding 100 trillion won, which would involve public and corporate participation to invest in strategic projects for the next 20 years.

He pointed out the need to rethink South Korea's growth strategy, particularly addressing the issue of unbalanced growth that has hindered sustainable development. He stated that 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 serious issues.