[Policy Analysis] Lee Jae Myung’s Economic Shift: From Basic Income to Pro-Business... Why?

First Presidential Campaign Pledge Focuses on Fostering New Industries
Pragmatic Approach Strengthened After Democratic Party Convention
Maintaining a Fair Economy Rather Than Simply Following Liberalism

"Are you worried that I might suddenly issue an emergency executive order?"

Lee Jae Myung, the presidential candidate of the Democratic Party of Korea, is putting 'growth' and 'pro-business' policies at the forefront in this presidential election. However, since Lee has previously advocated for a 'basic society,' there remain doubts about the sincerity of his economic policy direction. On May 8, during a meeting with the heads of the five major economic organizations, Lee appeared to be conscious of corporate concerns and even made a joke. Regarding concerns about emergency executive orders, he stated firmly, "I cannot do such a thing, and there is no reason to do so."

Lee Jae Myung, the presidential candidate of the Democratic Party of Korea, is giving a speech at the "Revolution of Light" campaign rally held at Cheonggye Plaza in Seoul on May 12, 2025, the day the official campaign for the 21st presidential election began. Photo by Kim Hyun Min

Lee's growth strategy can be analyzed through his past meetings with economic organizations during his tenure as party leader, his recent remarks at the meeting with the five major economic organizations, and his ten major campaign pledges for this presidential election. Since the Democratic Party's national convention in August last year, Lee has further strengthened his pragmatic and pro-business stance. He has made efforts to break away from parts of the Democratic Party's 'dogma' regarding business and labor. His economic remarks are strongly characterized by pro-market pragmatism.

Whenever he has the opportunity to speak on economic issues, Lee emphasizes his pro-business stance. He has said, "At the center of reviving the economy are businesses themselves, and the era when the government proposed and led economic and industrial issues, as it did in the past, is now over." While he has previously emphasized a fair society, he has now organized his position to argue that growth can create fruits, and by sharing those fruits, the issue of distribution can also be improved.

Among the ten major pledges submitted to the National Election Commission, his first pledge is focused on fostering future growth industries, such as 'establishing a new foundation for growth through the intensive development of new industries like artificial intelligence (AI),' 'strengthening support for K-content to become one of the global top five cultural powerhouses,' and 'fostering K-defense industry.'

He is also revealing a more realistic view of the market. Regarding real estate policy, he said, "My thinking has changed a lot. In the past, I thought houses were for residential purposes, not for speculation, but now I realize that is impossible."

However, he does not simply follow liberal economic policies. Regarding the role of government, he maintains the framework of a fair economy and active industrial policy. In his campaign pledges, he has indicated a direction of strengthening the role of the state as a protector and ensuring a fair economy. Lee has promised to introduce a fiduciary duty of loyalty for shareholders under the Commercial Act to prevent abuses of control by major shareholders, and to eradicate acts of private interest by controlling shareholders who exploit capital or profit-and-loss transactions. On the other hand, for future key industries such as AI and renewable energy, he is strongly determined to secure future growth engines through bold government investment. He stated, "The government must have a clear direction on how to lead the industrial economy and carry out detailed and long-term planning." It is also notable that he emphasizes gradual compromise in his approach to individual issues. Whenever he mentions issues that require social compromise, he frequently uses terms such as "little by little" and "gradually."

Choi Byung Chun, director of the New Growth Economy Research Institute, commented, "Considering that simply talking about growth used to symbolize the right-wing during the presidencies of Roh Moo Hyun and Moon Jae In, this is a centrist and significant step forward." However, he also diagnosed, "Although there is talk of economic growth, it is still largely rhetorical and aspirational, and concrete policies need to be further developed."