From AI to labor: Where presidential hopefuls stand on key economic issues

With less than two weeks remaining until the June 3 presidential election, major candidates have identified economic growth, artificial intelligence, and energy strategy as key campaign issues.

But while Lee Jae-myung of the liberal Democratic Party, Kim Moon-soo of the conservative People Power Party and Lee Jun-seok of the minor conservative New Reform Party, share these priorities, their proposals reflect broader ideological differences.

The Korea Herald has taken a closer look at their campaign platforms and promises to compare their positions on the key economic issues.

Last week, the candidates submitted their top 10 pledges to the National Election Commission. Both Lee Jae-myung and Kim Moon-soo ranked the economy as their top priority, signaling a shared urgency to revitalize the country’s business and fiscal landscape.

However, their approaches differ. A "fair economic structure” would serve as the foundation for economic growth under a Lee presidency. His policies include cracking down on stock manipulation and speculative investment behavior, stricter protections for minority shareholders, and eliminating unfair practices to help small and medium-sized companies grow.

In contrast, Kim promotes “freedom-led growth,” pledging to create a more business-friendly country by removing regulations and offering tax incentives and subsidies to boost corporate investment.

Meanwhile, Lee Jun-seok believes economic growth can be achieved by easing regulatory hurdles and promoting reshoring. He proposes overhauling the current regulatory sandbox system, including a provision that would allow applicants to reference more relaxed regulations from other advanced countries and apply them domestically.

Lee also stresses “reshoring,” encouraging Korean companies that have relocated overseas to return and reinvest in the domestic market, by promising incentives, such as maintaining the same labor conditions they had overseas.

AI has taken center stage in the presidential campaign, with candidates pledging mega investments to transform the country into an AI powerhouse.

Frontrunner Lee of the Democratic Party has been advocating a state-led initiative to cultivate the AI industry, stressing the public’s role in generating large-scale investments and making AI technology broadly accessible.

Lee proposesa 100 trillion won ($71.9 billion) fund through a public-private partnership, with the goal for Korea to become the world’s top three nations in AI.

With this funding, he vows to build national AI data clusters, secure more than 50,000 cutting-edge graphic processing units and support the development of AI-critical neural processing units.

He also floated the idea of developing a “Korean-style ChatGPT,” providing it free to the public. Other plans include creating schools specialized in AI at national universities and expanding the range of military service exemptions for science and tech talent.

Meanwhile, Kim's AI policy is more market-oriented. He also promised a 100 trillion-won public-private joint fund, but it will be backed by global tech firms to invest in AI startups.

His focus appears to be on nurturing tech talent, with the aim to foster 200,000 AI professionals. This would be done through expanding enrollment in AI graduate schools and software-focused universities, and attracting workers from overseas.

Lee of the Reform Party, who has been critical of large-scale AI investments. proposes structural reforms to strengthen competitiveness in strategic sectors such as semiconductors, batteries and AI, rather than outlining a dedicated AI strategy,

Lee's policies include creating a pension program to reward top researchers and tech talents, implementing a fast-track immigration system for science and technology experts, easing retirement age restrictions and increasing salaries for researchers to retain talent.

The candidates are also miles apart on labor issues, particularly regarding the contentious Yellow Envelope Bill, a proposed revision to the Trade Union and Labor Relations Adjustment Act. The amendment aims to protect labor unions from corporations seeking claims for damages incurred during labor disputes.

Though the Democratic Party-controlled National Assembly has tried to pass the bill twice, it was vetoed by former President Yoon Suk Yeol amid opposition from strong business opposition.

Lee Jae-myung supports the bill, pledging to strengthen protections for unionized workers and promote fair labor practices.

“The Supreme Court has already acknowledged (the necessity) of this law. The International Labor Organization also recognizes it,” Lee said during the first televised debate on Sunday. “The yellow envelope bill is something that must be done.”

In contrast, Kim opposes the bill, contending during the debate it would make it “impossible to do business in Korea.” He argues that the bill contradicts both the Constitution and civil law and warns it could lead to prolonged labor disputes.

On another hot-button topic of working hours, Lee has proposed a reduction of the total workweek from 40 to 36 hours, moving toward a 4.5-day workweek without a pay cut and eventually aiming for a four-day workweek.

Kim is more cautious about the shorter workweek approach. Kim’s PPP proposes maintaining the total workweek at the current level of 40 hours, allowing employees to work an extra hour Monday through Thursday on top of the usual eight hours to get a half day off on Friday. Kim also stressed that such adjustments should be left to the discretion of individual businesses rather than mandated by law.

Energy policy is another area where the candidates clash. Lee is a believer in renewable energy, vowing to close all coal-fired power plants by 2040 and build more large-scale solar and offshore wind farms.

Meanwhile, Kim seeks a nuclear expansion, building on the Yoon Suk Yeol administration’s embrace of nuclear energy. Calling nuclear energy essential for supporting high-tech industries such as AI, which require a substantial amount of energy, his goal is to increase the share of nuclear power in the national energy mix to 60 percent.

Lee of the Reform Party echoes Kim's stance on nuclear power, saying securing a stable power supply is the most important factor for the development of the AI industry.

But in recent days, Lee of the Democratic Party has been adopting a more flexible stance, no longer completely ruling out nuclear power as an option. This marks a clear departure from the nuclear phase-out policy of previous Democratic Party president Moon Jae-in.

“We need both nuclear power and renewable energy,” Lee said during the televised debate on Sunday. “When it comes to the question of how much each should account for, nuclear power is risky and has sustainability issues. While we should use nuclear energy when necessary, we should be gradually shifting toward a renewable energy-centered society.”

The candidates also clashed on dealing with US President Donald Trump's tariff pressures and negotiating tactics.

Lee of the Democratic Party said, "There's no need to rush" into making an early settlement with Trump during Sunday's debate. Stressing Korea's national interest as the most important principle in negotiations, Lee said he will prepare the talks delicately, while stressing the need to diversify Korea's export markets and export items in the future.

In contrast, Kim said he will hold talks with Trump at the earliest possible date. "Based on mutual trust between Korea and the US, we will successfully conclude negotiations before the expiration of the July 8 tariff grace period," Kim said at the debate.

Meanwhile, Lee of Reform Party argued the need to respond calmly and strategically in regards to talks with the US. "We need to make it clear that Korea and the US are not simply trading partners, but allies who share security and strategy," he said at the debate.