President Lee Stresses 'Growth' 31 Times: "Government to Completely Redeploy Resources, Overcome K-Shaped Growth"

President Lee Holds New Year's Press Conference on January 21
Says "Not Worried" About 100% Semiconductor Tariffs
Expects Exchange Rate to Drop to Around 1,400 Won

President Lee Jae-myung is answering reporters' questions at the New Year's press conference held at the Blue House State Guest House on the 21st. Photo by Yonhap News Agency

At the New Year's press conference on the 21st, President Lee Jae-myung declared, "The government will completely reallocate its resources and capabilities to overcome low growth," and pledged, "We will redraw the growth map of the Republic of Korea." He emphasized his commitment to overcoming K-shaped growth, in which one sector grows rapidly while others stagnate.

In his opening remarks at the press conference held at the Blue House State Guest House at 10 a.m. that day, President Lee used the word "growth" a total of 31 times. He pointed out, "Many countries that once led us have fallen into the trap of low growth," and warned, "If Korea remains fixated on the formulas of past successes, we will fall into a similar vicious cycle." As a solution, he cited the major transition centered on "local development, co-prosperity, safety, culture, and peace," which he had outlined in his New Year's address on January 1, and expressed confidence that this would be "the shortcut that will lead Korea to a new future of great leaps forward."

President Lee specifically mentioned "local-led growth" as his top priority, explaining that this means "reordering every single priority in state administration from one to ten." To this end, he pledged to ensure the ongoing metropolitan city integration is a success and promised to "take full responsibility for related support until the end." He said the K-shaped growth phenomenon, which refers to polarization during the recovery phase after an economic downturn, would be overcome by revitalizing startups. In addition, he vowed to continue efforts to reduce industrial accidents, support K-culture, and resume inter-Korean dialogue.

After his opening remarks, questions followed regarding the livelihood economy. Regarding the Trump administration's "100% semiconductor tariff" pressure, President Lee dismissed concerns, saying, "I am not particularly worried. This is a routine matter." He added, "If tariffs are raised by 100%, the price of semiconductors in the United States will probably rise by 100% as well," and noted, "We have already agreed to ensure that Korea is not at a disadvantage compared to Taiwan."

When asked about measures to address the won-dollar exchange rate, which has soared close to 1,500 won, President Lee assessed, "It is difficult to restore it easily with policies unique to Korea." Nevertheless, he stated, "Compared to the yen-dollar exchange rate, we are holding up relatively well," and predicted, "According to the responsible authorities, the rate is expected to fall to around 1,400 won in a month or two."

Regarding real estate policy, he announced, "The Ministry of Land, Infrastructure and Transport will soon announce practical measures to expand supply." However, President Lee also added a note of criticism, saying, "Some people think they should become wealthy by buying up houses one by one, but that is speculative demand." He left open the possibility of utilizing tax policy to stabilize housing prices, stating, "If tax regulation becomes necessary, there is no reason not to use it just because it is not desirable."

As for claims that the "funding of retirement pensions," reportedly under discussion by the government and ruling party, could be used as a tool to defend the foreign exchange market, President Lee strongly criticized such views as "malicious fake news." He said, "Is it desirable to leave such a massive and important asset in society untouched?" and added, "We need to discuss how to manage workers' retirement assets."