[Interview] Yoo Jongil: "In the Era of AI Transformation, the Government Must Take an Active, Entrepreneurial Role"

Interview with Lee Jaemyung's Think Tank, Growth and Integration Co-Executive Director
"Accepted Lee's Request to Devise a Growth Strategy After Sensing His Sincerity"

Yoo Jongil, co-executive director of "Growth and Integration," appeared on the "AK Radio" YouTube channel of Asia Economy on April 18, 2025, and stated, "Shortly after the declaration of martial law, I received a call from former Democratic Party leader Lee Jaemyung, asking me to devise a growth strategy," adding, "I felt sincerity in the straightforwardness of his request."

Yoo explained that he asked Lee about his principles for selecting talent. "Former leader Lee replied, 'If someone is competent and has the right attitude, I will employ them broadly, regardless of which administration they served in,'" Yoo said. He added, "After hearing that answer, I was convinced that I could stake my lifelong reputation to support him."

Growth and Integration, often referred to as Lee Jaemyung's policy think tank, has quickly gained attention due to the unique circumstances of this presidential election, which lacks a presidential transition committee. Yoo, who plays a leading role in Growth and Integration, is closely involved in shaping the policy blueprint for Lee, a leading presidential candidate.

Yoo's interview took place at 9:00 a.m. on April 18, 2025, at the Asia Economy studio in Chungmuro, Jung-gu, Seoul, and lasted for one hour and twenty minutes. Notably, Yoo criticized the nuclear phase-out and real estate policies of the previous Moon Jae-in administration and suggested alternative approaches.

Yoo criticized the nuclear phase-out policy, stating, "Nuclear power is absolutely necessary. We should build new nuclear plants as soon as possible." He further argued, "Scientifically, nuclear power is much safer than thermal power generation," and added, "As technology advances, concerns about safety will disappear." Regarding real estate policy, he said, "It is important to build enough homes where people want them, in line with market principles."

Yoo Jongil, co-executive director of the think tank "Growth and Integration" led by Lee Jae-myung, is appearing on AK Radio at the Asia Economy headquarters, being interviewed by editor So Jongsup. Photo by Heo Younghan

Yoo stated, "Instead of constantly regulating and prohibiting things, we should create better alternatives that naturally eliminate the bad ones," adding, "But by focusing only on regulation, we have stifled truly progressive possibilities." He referenced journalist Ezra Klein's self-reflection after the U.S. Democratic Party's presidential defeat, and argued that the so-called progressive governments in Korea must also fundamentally change their policy approaches.

The following is a Q&A.

-Is Growth and Integration Lee Jaemyung's think tank?

△It is called that because I have a long-standing relationship with Lee and offer him advice, but it is not an official designation. During the period of martial law and impeachment, democratic citizens worked to set the country right, and intellectuals gathered to prepare policies to ensure such events never happen again. It is an organization similar to a "volunteer corps" for this purpose.

-What is your connection with Lee Jaemyung?

△I have known Lee since before he became mayor of Seongnam, but we were not particularly close. When Lee was mayor, we served together as co-heads of Jubilee Bank. Jubilee Bank was a kind of movement to rescue people whose lives were devastated by excessive debt, and at that time, every local government established financial welfare counseling centers. Seongnam was by far the most effective. Although our relationship had previously been casual, seeing how he addressed Seongnam's municipal debt made me think highly of him. Our relationship deepened from that point.

-What kind of person is Lee Jaemyung, from your close perspective?

△Lee has three main strengths. Having risen from a background as a boy factory worker, he has lived an inspiring life and possesses a strong sense of justice. Many people forget their humble beginnings, but Lee believes the state should do its utmost to ensure everyone can live a basic life. As is well known, he is also highly capable and communicates well, clearly identifying the essence of problems in terms that ordinary people can understand.

-You have expressed concern about the economic situation, calling it a second economic crisis.

△I see it as very serious. During the past foreign exchange crisis, the economy was struggling due to a temporary liquidity shock. Now, the problem is with the fundamentals. Productivity growth continues to slow. The exchange rate keeps rising, which is related to the declining value of our currency. Because the situation is serious, a transformation is necessary.

-Recently, you proposed the 345 strategy (potential growth rate of 3%, becoming one of the four major export powers, and achieving $50,000 per capita national income).

△In fact, the potential growth rate has been declining by one percentage point every five years. The idea is to reverse this trend and reach 3%. While growth rates will fluctuate, achieving a baseline growth rate of around 3% requires a groundbreaking strategy. I believe that with the right strategy and active participation from businesses and citizens, growth is possible.

Yoo Jongil, co-executive director of the think tank "Growth and Integration" led by Lee Jae-myung, appeared on AK Radio at the Asia Economy headquarters and is preparing for an interview with editor So Jongsup. Photo by Heo Younghan

-You have spoken of an AI-driven transformation and stressed the need for an entrepreneurial government.

△We should not leave everything to the market; the government must play an active role, taking risks, making new attempts, and driving innovation. While the state must still handle national defense and public safety, our lives are fundamentally changing in the era of the AI transformation. We cannot leave such a major shift solely to the market. If you suddenly tell everyone to "turn around," people will react differently and chaos will ensue. The government must take the lead, encourage participation, and reduce risk.

-Some, including former People Power Party leader Han Donghoon and other conservatives, criticize the "345 strategy" as fake economics.

△Our per capita income last year was $36,600, and some have calculated that reaching $50,000 in five years would require 6% annual growth. Having taught economics for a long time, I can quickly identify where misunderstandings arise. First, per capita income is measured in dollars, and last year's average exchange rate was 1,340 won per dollar. In 2018, the exchange rate was 1,100 won per dollar. If last year's exchange rate had been 1,100 won, per capita income would have easily exceeded $40,000. Also, per capita income is nominal and rises with inflation. Taking these factors into account, it is possible to reach $50,000 by 2030. Honestly, $50,000 is not a burdensome target; the real challenge is achieving a 3% potential growth rate. What we truly need is to strengthen the fundamentals of our economy. If we do that, the exchange rate will fall and the growth rate will rise.

-Energy is also a major issue, and the power supply plan includes the construction of two nuclear plants. What is your view?

△While renewable energy is necessary, I believe nuclear power is also essential. Renewable energy production is inconsistent, and it is difficult for us to produce large amounts at low cost. Renewable energy is needed, but nuclear power must be included in the energy mix. Personally, I think we should accelerate the development of nuclear power and related projects.

-What is your view on extending the retirement age?

△In the past, the population had a pyramid structure and lifetime employment was the norm. However, demographic changes mean that seniority-based systems are no longer sustainable. The retirement age can and should be extended, but it is not desirable for people to expect rewards beyond their contributions.

Who is Yoo Jongil, Co-Executive Director of Growth and Integration?

Yoo Jongil, co-executive director of Growth and Integration, is an economist who has advocated for economic democratization and chaebol reform. Born in 1958 in Jeongeup, North Jeolla Province, he earned a bachelor's degree in economics from Seoul National University and a Ph.D. in economics from Harvard University in the United States.
His doctoral dissertation demonstrated how strategic industrial policy by the state can effectively drive economic growth. He has served as a professor at the University of Cambridge in the UK, the University of Notre Dame in the US, and Ritsumeikan University in Japan, as well as at the KDI School of Public Policy and Management.
During his school years, Yoo has said that reading works such as "The Logic of the Transition Era" and "Gyeokji" became turning points in his life. He commented, "I had always been somewhat interested in history, society, and politics, but it was probably during the summer vacation of my first year in high school that I encountered those books and the world began to look different. It was a realization that the knowledge I had been taught was not everything."
Whenever a progressive government has come to power, Yoo has drafted economic policy blueprints but has never hesitated to voice criticism. During the Kim Dae-jung administration, he criticized neoliberal policies, and during the Roh Moo-hyun administration, he expressed critical views on the Korea-US Free Trade Agreement (FTA). Under the Lee Myung-bak administration, he criticized resource diplomacy and the Four Major Rivers Project.
In addition to his academic and policy work, Yoo has served as head of Jubilee Bank and chairman of the Good Country Knowledge Cooperative. His older brother, Yoo Jonggeun, served twice as governor of North Jeolla Province. Yoo and his three brothers all majored in economics, a rare family record.
Since taking the helm of Growth and Integration, Yoo has been busier than ever. Although he now sleeps much less, he shared that he still tries to work out twice a week to manage stress.