Eonju Lee: "The Democratic Party is Centrist or Center-Conservative" [So Jongseop's Sokterview]

Interview with Lee Eonju, Supreme Council Member of the Democratic Party of Korea
"If someone who spent their life attacking others becomes president, it would be wrong"
"Refusing to amend the Commercial Act is very regressive"

Lee Eon-ju, a Supreme Council Member of the Democratic Party of Korea, appeared on the Asia Economy YouTube channel 'AK Radio.' Lee serves as the Chairperson of the Democratic Party's Future Economic Growth Strategy Committee and the Head of the Economic Situation Inspection Team. From February 21 to 27, she visited the United States with the Korea Chamber of Commerce and Industry's economic delegation and returned. The following day, on February 28 at 4:30 PM, she was interviewed for an hour and a half at the Asia Economy studio in Jung-gu, Seoul, discussing the movements of the second Trump administration she observed in the U.S., our countermeasures, and recent political issues.

On February 28th, Assemblywoman Lee Eon-ju was interviewed on the Asia Economy YouTube channel AK Radio.

What was the background for your visit to the United States?

Currently, we are under an acting authority system, and while other countries have held summits since the second Trump administration took office, our country has not. We needed to engage in some behind-the-scenes dialogue. Even if it was just lawmakers or businesspeople, we had to go and communicate Korea's position, clarify misunderstandings, and inform them of things they might not know as part of outreach diplomacy. From the Democratic Party, Representative Wi Seong-rak and I participated, and from the People Power Party, Representatives Kim Geon and Choi Hyung-doo joined as well.

What was the biggest change you felt on the ground?

During his first term, President Trump pursued an America-first policy and applied trade pressure to check China. In that process, there was pressure not to export strategic products to China. However, this time, tariff pressure has started against all countries.

He clearly calculates even with allied countries; there are no exceptions. We are repeatedly seeing a situation where there are no true allies. In this regard, we must be very vigilant. During the first term, President Trump’s aides were people who operated within the international order’s legal norms. But now, it has been completely reorganized around President Trump himself. To put it bluntly, it seems like we are heading toward neo-imperialism. We view this change in the international order very seriously and must adapt quickly.

It seems the U.S. has high expectations for our country's shipbuilding industry. I understand you also visited the U.S. shipyard acquired by Hanwha during this trip.

Visiting the Philadelphia shipyard acquired by Hanwha, I was able to see the current state of the U.S. shipbuilding industry. It resembled Korean shipyards from the 1980s. They build only one or two ships a year. The U.S. shipbuilding industry has practically declined. There is no place to repair or build old warships. Therefore, the U.S. has proposed legislation to allow shipbuilding in allied countries regardless of party lines. They are requesting our cooperation.

If we try to build and export domestically, we must have security facilities, and volume adjustments are necessary. I told officials that it would be good if the law could be passed quickly because we need to show a long-term vision and establish mid- to long-term agreements. However, it seems the law will only pass around autumn.

This is connected to the Korea-U.S. alliance. If an early presidential election is held, when the new government negotiates with the Trump administration, defense cost discussions will definitely arise. At that time, we should bring up shipbuilding. For example, even if defense costs increase, the U.S. could increase orders for ships from us, or we could say we will use defense costs to build or repair U.S. ships. Ultimately, it’s the same money, but it is spent in our country. Shipbuilding can be a negotiation link. This is very important.

Assemblywoman Ianju Lee, who visited the United States, is talking with U.S. officials. Photo by Assemblywoman Ianju Lee

There are also talks about considering the development and import of Alaska LNG as one of the cards.

President Trump is a businessman. He is clear about give-and-take. When we face pressure regarding tariffs, we need cards to offset them. I met several U.S. senators and mainly discussed AI, shipbuilding, and energy cooperation. They demand imports of fossil fuels, namely shale gas and natural gas, because most of President Trump's supporters are from that sector. We also use a lot of liquefied natural gas (LNG). Diversifying LNG import sources is necessary.

One of the most interesting projects related to this is the Alaska natural gas development project. Korea is very excellent in engineering. And we have better cost-effectiveness than Japan. Therefore, there is a request for many Korean companies to participate in the project. I told U.S. senators that we are interested as well. Whether we actually participate depends on money. It’s not the government but the companies’ issue. According to Japanese energy experts, Japan’s review concluded that the project is significantly less economical than the Gulf of Mexico. Development, labor, and construction costs are too high.

We cannot afford to lose. Then it is important what the Trump administration or the Alaska state government offers. If tax deductions, subsidies, or tariff benefits make it only slightly more expensive than imports from the Middle East, it might be acceptable, but if it is much more expensive, it is impossible. Another option is to consider forming a consortium with Japan and cooperating. I discussed this a lot with the Japanese side.

How is Japan moving?

Japan has been preparing since around last fall, even before President Trump was elected. They seem to have almost completed an economic feasibility analysis of the Alaska project. They have also analyzed strategically whether it is beneficial to ally with Korea or not. Since it is a long-term project, they appear to have prepared scenarios for how to proceed over several years.

I conveyed everything I heard to the Ministry of Trade, Industry and Energy. In some ways, going slowly might be better. We might give away too much out of fear, but after seeing all other countries’ cards, we can calculate accordingly. We are in an unavoidable situation. It doesn’t seem bad.

Is the second Trump term an opportunity or a crisis for us?

Although there is uncertainty with President Trump, overall, it is rather an opportunity for Korea. Because our industrial transition has been delayed, we have fallen behind, and China has overtaken us. If this continues, we might have no place because of China. Especially, our key industries might collapse, but fortunately, the U.S. is blocking that. In places like the U.S. and the European Union (EU), we can exclude China. We often divide the global market with China.

This lawmaker said that Trump's second term is rather an opportunity for Korea. A photo taken with U.S. officials. Photo by Lee Eon-ju

Are you referring to industries like the battery industry?

Yes. Except for the Chinese domestic market, China and we are basically dividing the market. China has cost competitiveness, so we have been struggling, but the U.S. is blocking China. While the U.S. excludes China in the hegemonic competition, we can buy time in industries competing with China. This won’t last long. While these industries hold, we must quickly upgrade and transition to new technology and cutting-edge fields. The U.S. leads in AI, and there are many areas where we can cooperate. In nuclear power, especially SMR (Small Modular Reactor), we can become like TSMC in the foundry sector.

Let’s talk about current issues. Regarding the Semiconductor Special Act, the People Power Party insists on including an exemption from the 52-hour workweek.

The Semiconductor Special Act was originally proposed separately by Representative Kim Tae-nyeon and me, and then the People Power Party added an exemption clause for the 52-hour workweek. The previous bills support electricity, water, subsidies, etc., and there was some agreement with the People Power Party. The Democratic Party does not oppose the idea of working intensively and resting intensively. The problem is the foundation of the 52-hour workweek system. When you multiply 52 hours per week, you cannot exceed the total annual working hours. We said we could ease it within that range, but the People Power Party’s idea is to exceed the total amount.

That changes the whole discussion. It completely changes the basic principle of the 52-hour workweek labor law. Personally, it might be worth discussing, but it cannot be discussed in this law. If discussed, it should be in the Environment and Labor Committee (Environment and Labor Committee), and it should go through the Labor Standards Act amendment. It is beyond the authority of the Industry, Trade, Energy, Small and Medium Business Committee (Industry Committee) to discuss this issue.

What about the Commercial Act amendment? The business community is strongly opposing it.

Among major shareholders’ decisions, there can be decisions affecting shareholders’ stock prices, and those that infringe on proportional interests. For example, issues like merger ratios. There should be grounds to challenge such board decisions. In other countries, the duty of loyalty of the board also applies to shareholders. So including this in the Commercial Act is not against global trends. But why is it a problem in Korea? For example, in management disputes, there are unlisted companies and small family businesses that are unprepared.

Also, the U.S. does not have the crime of breach of trust in business. Here, we ask and punish for breach of trust, which some say is excessive. So the Democratic Party suggested abolishing the breach of trust crime. Once the Commercial Act is finalized, discussions on breach of trust will begin. There was also talk of applying it only to listed companies. Many unlisted companies are realistically unprepared.

The lawmaker said that once the discussions on the amendment of the Commercial Act are concluded, discussions to abolish the crime of breach of trust will begin.

Could the Democratic Party propose a bill limiting the scope of application to listed companies?

That was also discussed. But whenever we take the lead, the other side brings up something else. As discussions progress, both sides become more rigid.

So it ends up being “let’s stick to the principle.” I think it’s okay to start with listed companies and expand to unlisted companies within about five years. I hope it ends quickly even if it’s like that.

Recently, Representative Lee Jae-myung is moving toward 'moderate conservatism.' Are you concerned about the Commercial Act amendment issue?

The responsibility of directors to shareholders exists in advanced countries’ laws, so doing this does not mean left-leaning bias. This is truly a capitalist matter. If necessary, we will include principles of business judgment and discuss abolishing or easing breach of trust. The business community’s opposition is unrelated to capitalist development. It is a Korean characteristic. It arises because Korea’s market economy is not yet sophisticated. Refusing to do this is very backward.

What are your thoughts on the nomination of Ma Eun-hyuk as Constitutional Court Justice?

Acting authority Choi Sang-mok continues to ignore judicial order. This is not the first time. When the court issued an arrest warrant for President Yoon Seok-youl, he did not cooperate well. When the judiciary issued a warrant, the Security Office should have clearly issued guidelines as the head of state and executive branch.

The Constitutional Court decided that not appointing Ma Eun-hyuk violates the Constitution. Ignoring this contributes to some radical groups ignoring judicial order and creating lawlessness, like during the Western District Court riot. This is very serious. Ignoring the judiciary’s decision? From the standpoint of upholding constitutional order, it is absolutely unacceptable. If we recognize and partner with the acting authority, we would be condoning the behavior of ignoring judicial order.

If Acting Authority Choi Sang-mok continues not to appoint, will the impeachment card be used against him?

Well, the Constitutional Court’s impeachment decision is imminent, so whether they will impeach Acting Authority Choi is... There are plenty of grounds for impeachment. Not complying with the Constitutional Court’s decision itself is grounds for impeachment. Whether to proceed with impeachment is a matter of consideration given the early presidential election. However, it is unreasonable to negotiate state affairs with Acting Authority Choi. Even a formally elected president should not behave like this. If he continues like this, it will become very serious.

This lawmaker predicted that no serious situation would occur once the Constitutional Court delivers its impeachment ruling.

President Yoon’s impeachment trial verdict is approaching.

Many people appear before the Constitutional Court and say various things, but in fact, the martial law proclamation issued under President Yoon’s name fully satisfies the grounds for impeachment. Various arguments might be mitigating factors in President Yoon’s criminal trial but are not grounds for impeachment. Even if impeached, it will not lead to a much more serious situation than before.

For those expecting dismissal, if the impeachment is accepted, attention will shift from President Yoon to another focal point. Currently, President Yoon is the focal point against Lee Jae-myung. Since there is no other focal point, people gather there. Once this falls, a new focal point will be sought. President Yoon will be shocked by this. He currently deludes himself as a hero, but reality is harsh. The new focal point and new power will emerge.

We are in a very difficult situation. The negative election resulted in electing someone like President Yoon Seok-youl. I told Representative Lee Jae-myung that continuing negative elections will lead to no vision even if you win, so you must compete with a vision for Korea regardless of what the opponent says. If you trace back why such a situation happened and how such a person was elected president, the cause lies in the negative nature of the last presidential election.

Representative Lee Jae-myung’s appeal trial verdict on the Public Official Election Act is expected in March.

This is not another case but an election law case. And this election law is from the last presidential election. The person elected in that election has now declared martial law and is impeached. It makes no sense that the election law issue from the previous election becomes a risk in the current presidential election for our future. Disqualifying someone in the current election for minor misstatements in the previous election is not convincing. The public will not be swayed by this. The first trial had many serious errors, so the appeal trial will differ significantly.

Originally, election law aims to invalidate elections won by lying, but he did not win and lost. Then, should he be barred from running in the next election? This raises constitutional issues. It excessively restricts voting rights. It is different from a guilty verdict in a major corruption case.

Recently, Representative Lee advocated a 'moderate conservative' stance.

During President Moon Jae-in’s time, the Democratic Party’s mainstream was progressive. But Representative Lee Jae-myung and his associates are mostly non-activists. Because they are not activists, many were marginalized in the party. The previously marginalized fringe forces took over the Democratic Party and became the mainstream. This is completely different from past administrations’ policies. I am one of those people. Those who actively participated in the Moon administration’s policies might be dissatisfied depending on their evaluation, but they are no longer the mainstream. Especially, the fact that a non-activist like Representative Lee Jae-myung became the party leader and almost dominated the party shows the Democratic Party’s adaptation to changing times.

During President Kim Dae-jung’s time, the Democratic Party was also a conservative opposition party. At least the Democratic Party is centrist or center-right. Another big reason is that the People Power Party is moving further to the extreme. Therefore, from our perspective, we cannot ignore the policy demands of moderate conservatives, such as inheritance tax reform. Reflecting these policies continuously means we must actively embrace moderate conservatives.

Rep. Lee predicted, "When the presidential election takes place, the spirit of the times will be growth and integration."

If an early presidential election becomes reality, who do you think will be the People Power Party candidate?

I thought those opposing martial law would be likely candidates, but it doesn’t seem so. Polls show Minister Kim Moon-soo leading. I think, “Really?” but reality is like this, so I am watching. Choosing a presidential candidate with no experience and serious problems, failing to prevent it, and even leading to emergency martial law are all the People Power Party’s responsibility. The People Power Party should not field a candidate. Instead, they should apologize to the public for this situation and declare they will never use the military to seize power again.

Former leader Han Dong-hoon evaluated, "The most dangerous person is Representative Lee Jae-myung."

Han Dong-hoon played a role in lifting emergency martial law, so I don’t want to speak ill of him. However, someone who has spent their life attacking others should not become president. It is right for someone productive to become president. Han is responsible for intensifying partisan conflicts between parties and ideologies. The conflict intensified after former President Roh Moo-hyun’s death and again after the excessive investigation following President Park Geun-hye’s impeachment. Both Yoon Seok-youl and Han Dong-hoon bear significant responsibility for the politicization of the judiciary and the politics of constant attacks. It will be hard for them to be forgiven for this.

Former Prime Minister Lee Nak-yeon advocates 'Yoon Seok-youl and Lee Jae-myung joint resignation theory.'

There is no need to discuss it. No one cares. There is no need to talk about someone with little interest before the election. He should realize this. The public has no expectations of him.

What do you see as the spirit of this presidential election era?

First, growth. It is stuck at the national level. Individuals are also struggling. We need to restore dynamism. Another is integration. We must embrace even those who regret voting for President Yoon. So there is no need to delve too deeply into historical debates. We are not historians, are we? Instead of fighting over abstract things, we need to show the ability to coordinate interests and reach consensus. Integration is not easy. We must try to be patient.

The era of left-right ideology is ending, and the era of survival ideology has arrived. The current situation resembles the late Joseon Dynasty’s enlightenment period. We are heading toward neo-imperialism. Fortunately, our internal foundation is much stronger than then. The same thing is that the future depends on how we act at this crossroads. We must choose well and set the right direction. For survival, we must pursue growth and integration. It is time to be cold-headed for survival. There is no time or room for daydreaming. Responsible politics is needed.

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