Lee Jae-myung makes pro-business gestures to court centrist voters

Democratic Party of Korea presidential nominee Rep. Lee Jae-myung on Thursday stressed South Korean business circles' role in achieving an economic rebound here amid growing trade uncertainties, in an apparent break from the liberal bloc's long-standing anti-business sentiment.

The 61-year-old liberal presidential front-runner also called for a paradigm shift in South Korean industries by nurturing artificial intelligence technology and encouraging the use of renewable energy.

"Business circles should play the central role in economic revitalization, gone are the days when the government spearheaded the economic and industrial agenda," said Lee, as he held talks with South Korean business leaders at the Korea Chamber of Commerce and Industry headquarters in Seoul Thursday.

"Now, if (the government) fails to trust the expertise and capabilities of those in the private sector and fails to support them faithfully, it will be difficult to overcome challenges."

South Korea's economy shrank in the first quarter of this year by 0.2 percent compared to the previous quarter, according to data from the central bank.

Given the harshness of the United States' strategies in terms of trade and foreign affairs, which could put a damper on the momentum needed for an economic rebound, Lee said both the government and businesses "need to gather strength and map out a joint strategy"

Lee's pro-business gestures appear to be aimed at courting centrist voters — especially moderate conservatives and swing voters concerned about economic growth, jobs and market stability.

His move comes especially after a Seoul court on Wednesday ruled out the possibility of confirming his criminal conviction over his election law violation in 2021, which could have disqualified him as a presidential candidate.

A recent Realmeter poll for the first week of May showed Monday that 58.4 percent of respondents who identified themselves as centrists — which accounted for about 40 percent of the total — aspired for a leader from a liberal party. The figure slightly fell from 62.5 percent recorded among centrists in the previous week. Monday's poll reflected the people's reaction to the Supreme Court's ruling on May 1 to overturn the lower court's acquittal over Lee's election law violation.

Lee led the Democratic Party until formally announcing his presidential bid earlier this year. He was also the party's candidate in the 2022 presidential election, where he lost to Yoon Suk Yeol, who was ousted as president by the Constitutional Court in April.

Among some 300 business leaders who met Lee Thursday were chiefs of South Korean business lobby groups, such as Chey Tae-won, chair of the Korea Chamber of Commerce and Industry; Sohn Kyung-shik, chair of the Korea Enterprises Federation; Ryu Jin, chair of the Federation of Korean Industries; Yoon Jin-sik, chair of the Korea International Trade Association and Choi Jin-shik, chief of the Federation of Middle Market Enterprises of Korea.

There, representatives of South Korean business circles advised Lee to boost economic growth through AI, deregulation and energy policies, find a new industrial growth engine, support companies' expansion to overseas markets, among others.

In response, Lee said the time is ripe for South Korea's industries to achieve a paradigm shift through the adoption of cutting-edge technologies, including AI, suggesting that South Korean business leaders focus on nurturing the adoption of AI in manufacturing businesses.

Lee also hinted at revitalizing the renewable energy sector, which he said was sidelined during the Yoon administration due to its nuclear energy push.

"Our reliance on fossil fuels to run a business will greatly undermine the competitive edge of South Korean firms, considering the RE100 requirements. We need to foster the growth of the renewable energy industry," he said.

Lee also said that raising the retirement age beyond the current age limit of 60, which he earlier proposed as the campaign pledge, requires a public debate before any legislative move, saying an abrupt decision to do so could undermine the labor productivity of the business.

Lee, however, played down the possibility of a further inheritance tax cut from the recent revision that would take effect from 2028, in response to a request from the business circles.

Later Thursday, Lee said in a livestreamed talk show with South Korean personal finance YouTubers that introducing a tax incentive to individual long-term stock investors is "a desirable option."

He also reiterated his earlier pledge to address downside risks on the stock market such as inconsistencies in industry-related policy directions and geopolitical tension, which would theoretically allow Kospi — an index for the Korea Exchange's main board — to surpass the 5,000 point, doubling the current level.