Ruling Party and Government Announce Major AI Transformation Across All Sectors, Move to Rationalize Excessive Corporate Penalties (Comprehensive)

Technology-Driven, Inclusive, Fair, and Sustainable Growth
Comprehensive Support Packages for Advanced New Industries, Including Tax and Finance
Task Force to Rationalize Breach of Trust Offense to Be Formed

The ruling party and the government have decided to promote a major artificial intelligence (AI) transformation across all sectors, including businesses, the public sector, and everyday life, and to open up public data. They will also select key projects in advanced new industries and provide comprehensive support packages, including fiscal, tax, financial, and human resources. Additionally, they plan to rationalize regulations that do not meet global standards and excessive economic penalties, including the crime of breach of trust.

On the 20th, the Democratic Party and the government held a 'Party-Government Consultation on the New Government's Economic Growth Strategy' and confirmed their policy direction. The four main policy directions of the Lee Jaemyung administration are 'technology-driven growth,' 'growth for all,' 'fair growth,' and 'strengthening the foundation for sustainable growth.' The plan is to grow the economy by securing new growth engines and a global-standard business environment and then share the fruits of that growth with the public. The Democratic Party decided to form a task force (TF) to discuss improvements, including the rationalization of the breach of trust offense.

Kim Byunggi, floor leader of the Democratic Party, and Koo Yoonchul, Deputy Prime Minister for Economy and Minister of Strategy and Finance, are taking a commemorative photo at the ruling party-government meeting on the new government's economic growth strategy held at the National Assembly Members' Office Building on the 20th. From the left, Paik Kyunghoon, Minister of Science and ICT, Han Jeongae, Chair of the Policy Committee, Kim, floor leader, Koo, deputy prime minister, and Ahn Hoyoung, Chair of the National Assembly Environment and Labor Committee. 2025.8.20 Photo by Kim Hyunmin

Democratic Party leaders, including floor leader Kim Byunggi and Policy Committee Chair Han Jeongae, as well as Deputy Prime Minister for Economy and Minister of Strategy and Finance Koo Yoonchul and Minister of Science and ICT Paik Kyunghoon, discussed the blueprint for the new government's economic growth strategy at the National Assembly on this day.

After the meeting, Chair Han stated, "The party requested the government to prepare concrete growth strategies to overcome immediate difficulties and achieve an economic rebound. The government has decided to establish the new government's economic growth strategy under four main policy directions: technology-driven growth, growth for all, fair growth, and strengthening the foundation for sustainable growth."

Regarding 'technology-driven growth,' the government plans to promote an AI transformation across all sectors, including businesses, the public sector, and the general public, and to open up public data. Comprehensive support packages-including fiscal, tax, financial, and human resources-for key projects in advanced new industries were also presented as measures for technology-driven growth.

Regarding 'growth for all,' Policy Committee Chair Han introduced, "We have decided to pursue growth for all, where every citizen can participate in the opportunities and benefits of growth." To this end, they will promote local tourism by preparing total tourism packages and expand the scale of the regional balanced development account to over 10 trillion won. The method of support for the regional balanced development account will be shifted from project-specific subsidies to comprehensive subsidies. In addition, the Democratic Party requested increased support for small business owners, such as raising the contribution limit for the Yellow Umbrella Mutual Aid Fund, and measures to reduce living expenses for vulnerable groups, such as expanding the 1,000-won breakfast program. The government agreed to actively review these proposals.

Efforts for 'fair growth' through the elimination of unfair practices are also being pursued. The ruling party and the government agreed to quickly address unfair transactions by expanding the scope of the supply price linkage system and to eradicate industrial accidents by expanding the scope of the Industrial Safety and Health Act.

To 'strengthen the foundation for sustainable growth,' the ruling party and the government will expand the application of the stewardship code (guidelines for institutional investors' exercise of voting rights), including the National Pension Service and other pension funds, to improve corporate governance. They will also promote productive finance by focusing financial resources on sectors that contribute to economic growth, such as innovative and high-tech industries, venture companies, and small businesses.

To revitalize businesses, regulations that do not meet global standards and excessive economic regulations will be rationalized. In this regard, the Democratic Party will form an internal task force to respond. Chair Han stated, "There is a demand within the party to rationalize the breach of trust offense, so we are planning to launch a task force." However, regarding the timing of its launch, she added, "We will discuss further, check which standing committees are involved, and then establish it."

Previously, in a public statement, floor leader Kim emphasized the core of the Lee Jaemyung administration's economic strategy, saying, "Technology will drive growth, the public will share in the achievements, and we will build a sustainable future on the foundation of a fair order. This is the essence of the Lee Jaemyung administration's economic growth strategy." Kim also stated, "The government must boldly invest in technology in cooperation with businesses, and the private sector should use this as a springboard to accelerate industrial innovation. All economic actors must collaborate and integrate," adding, "The Democratic Party and the government will make the dream of becoming one of the world's top three AI powers, achieving a potential growth rate of 3%, and ranking among the world's top five economic powers a reality."

Science and ICT Minister Hoon Bae is speaking at the New Government Economic Growth Strategy Party-Government Meeting held at the National Assembly Members' Office Building on the 20th. 2025.8.20 Photo by Hyunmin Kim

Deputy Prime Minister Koo stated, "Recently, the potential growth rate has been rapidly declining, and the old formula for success has reached its limits. If even some of the super-innovative items prepared by the government succeed, I believe the Korean economy will enter a new phase of growth."

Minister Paik said, "The Ministry of Science and ICT will make becoming one of the top three AI powers and top five science and technology powers not just slogans, but national implementation goals, and will do its utmost for Korea's true growth." He added, "To achieve the leap to become one of the top three AI powers, we will focus on three key tasks: building an AI superhighway, developing next-generation AI technologies, and securing core AI talent."