South Korea’s lead presidential candidate eyes trade, pragmatism
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Mr Lee singled out trade negotiations with the US as the most pressing task to tackle in his first 100 days in office.
PHOTO: AFP
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SEOUL – The front runner in South Korea’s presidential race, Mr Lee Jae-myung, aims to prioritise trade talks with the US and the compilation of another extra budget to shore up Asia’s fourth-largest economy if he wins the June 3 election
The former chair of the main opposition Democratic Party has also pledged to enhance corporate governance standards and curb malpractices such as stock manipulation as part of efforts to boost the allure of the country’s US$1.6 trillion (S$2.1 trillion) stock market.
While Mr Lee was often compared with Mr Bernie Sanders for his ideals of pursuing better wealth distribution and enhanced labour rights, his most recent comments suggest that he’s broadly taking a more pragmatic approach to policy as he gears up to fill a looming leadership vacuum.
The election of the next leader will be a crucial step in putting the export powerhouse back on track, after former President Yoon Suk Yeol’s short-lived martial law decree
Political uncertainty after his impeachment and ultimate ouster hampered the government’s response to US President Donald Trump’s tariff campaign, exacerbating angst in an economy increasingly strained by the trade war.
Energy transition is also a key element of his initiative to revive regional economies hit in part by the world’s lowest fertility rate, as well as his push to relocate the presidential office and Parliament away from Seoul.
During a televised debate with his party rivals on April 23, Mr Lee singled out trade negotiations with the US as the most pressing task to tackle in his first 100 days in office, explaining that his team is already making preparations so that he can swiftly get involved and resolve the issue.
The Democratic Party has warned the negotiators, led by ministers appointed by Yoon, against making a “hasty” compromise with the Trump administration.
Mr Lee has called for creating a special parliamentary committee to handle the issue.
Mr Lee has said he will champion what he describes as “pragmatic diplomacy”, signaling his willingness to depart from previous liberal presidents who were accused of risking the US alliance in order to thaw frosty ties with North Korea, and of stoking anti-Japan sentiment for political gains at home.
His government would pursue practical foreign policy based on national interests, prioritising building a sound relationship with the Trump administration and fostering solid partnerships with like-minded countries like Japan, a campaign adviser told Bloomberg on condition of anonymity due to the sensitivity of the matter.
There’s a need to better manage relationships with China and Russia which have sunk to their lowest in decades, Mr Lee said, adding that it was a similar situation with North Korea.
Mr Lee aims to maintain deterrence while also exploring the possibility of resuming dialogue.
Financial industry
A former child sweatshop worker and labour lawyer, Mr Lee wants to reform South Korea’s corporate governance system by revising a key Bill on board duties and by providing greater protection to minority shareholders, a move seen in line with his longstanding drive to break up chaebol conglomerates that dominate the economy.
He has also vowed to stamp out malpractices such as stock manipulation and price rigging, calling them a source of “deep-rooted distrust” in the stock market that has for years driven investors to other markets.
He’ll also devise a concrete road map to help achieve the country’s cherished goal of being included in MSCI Inc’s list of developed markets – an upgrade from its current status as an emerging market.
The measures are aimed at curbing the “Korea Discount”, which refers to the long-depressed valuations of the country’s equities.
Once touted as South Korea’s Bernie Sanders for his advocacy of universal basic income, Mr Lee has now scrapped that idea, saying during the April 23 debate that it’s “premature” and now is the time to focus on revitalising the economy and spurring growth.
He said drawing up an additional supplementary budget is another task to be tackled in his early days in office, if elected, after his party criticised the recently announced 12.2 trillion won (S$11.18 billion) extra budget as insufficient to support people’s livelihoods.
Mr Lee unveiled a plan on April 24 to boost renewable energy, proposing an “energy expressway” consisting of renewables including offshore wind to help power major factory zones, and cuts to natural gas use and a gradual end to coal.
But the plan fell short of clarifying his position on nuclear energy, which can be a contentious issue in South Korea, with some saying the energy source is crucial in helping reach the nation’s net-zero goals.
Political reforms
Mr Lee has floated the idea of relocating the presidential office, Parliament and other public institutions to the administrative city of Sejong, some 120km south of Seoul, in a bid to invigorate provincial economies.
He has rejected other candidates’ proposal to hold a referendum in tandem with the presidential election on amending the Constitution to adopt a four-year, two-term presidency, but said he strongly supports the change and might seek to put it to a vote as early as 2025. BLOOMBERG
