On the 13th, South Korea’s Presidential Committee on National Policy Planning, which operates directly under the president, announced its Five-Year Policy Plan at the former presidential office, the Blue House. The plan outlines 123 national policy tasks to be advanced over the next five years across five key areas—politics, economy, society, foreign affairs, and security—accompanied by an additional fiscal investment plan of 210 trillion won (about 5.2 RMB per 1,000 won). This is the first systematic policy blueprint released by the Lee Jae-myung administration within 70 days of taking office. South Korean media see it as a sign of the administration’s determination to establish its policy direction under time pressure. However, after the plan’s release, several South Korean outlets noted that its implementation still faces challenges, including securing funding and enacting necessary legislation.
“Towards Becoming One of the World’s Top Three AI Powers”
This plan is viewed as the Lee administration’s first governing manifesto, with its core aim being to reshape the political power structure and lead a new wave of economic growth through AI (artificial intelligence) as the spearhead. According to Yonhap News Agency, among the 123 national policy tasks, “constitutional amendment” is listed as the number one priority. The National Policy Planning Committee stated that it will promote the establishment of a new constitutional system to embody the constitutional spirit of popular sovereignty.
In terms of economic development strategy, “towards becoming one of the world’s top three AI powers” is named as one of the core objectives. The plan proposes three strategic directions: “technology-driven growth,” “growth shared by all,” and “fair growth,” with the goal of raising the potential growth rate above 3% and aiming to rank among the world’s top five in technology by 2030. South Korea plans to build a nationwide AI “highway” to drive a large-scale AI transformation in industry, regions, and public services; establish an independent AI ecosystem; secure next-generation AI semiconductors and original technologies; preemptively acquire 50,000 cutting-edge GPUs; actively open public data; promote innovation in semiconductor and secondary battery industries; and introduce “zero-regulation” zones and special economic districts in areas such as AI, biotechnology, and renewable energy.
To support these goals, the South Korean government will establish a 100 trillion won “National Growth Fund,” focusing on future strategic industries such as AI, bio-health, “K-culture,” defense, and climate technologies. It will also push forward the construction of an energy “superhighway” and RE100 (100% renewable energy) industrial parks, while aiming to usher in the era of the KOSPI index reaching 5,000 points, join the ranks of the world’s top five cultural powers, expand the cultural market to 300 trillion won, achieve 50 trillion won in related industry exports, and attract 30 million foreign tourists annually.
“If you want to harvest a stone of rice in autumn, you must borrow seeds to sow now”
The social policy agenda focuses mainly on public healthcare, labor law reform, and climate policy, including strengthening the public healthcare system, reducing the fatality rate from industrial accidents to the OECD average, and explicitly stipulating “equal pay for equal work.” However, the plan omits Lee Jae-myung’s campaign proposal to establish a new “Ministry of Climate and Energy,” with most energy and climate policies instead grouped under economic and industrial sectors. According to KyungHyang Shinmun, some environmental groups criticized that climate- and environment-related items account for only eight of the tasks, are mostly principle-level statements, and lack concrete emission reduction targets.
Bloomberg reported on the 13th that during his campaign, Lee pledged to improve the affordability of living and enhance social equality. With the current economic slowdown, bond markets may closely watch how the plan affects the government’s fiscal management capacity. The South Korean economy also faces headwinds from its trade agreement with the United States, which imposes a 15% tariff on Korean exports to the U.S.
According to estimates by the National Policy Planning Committee, implementing these national policy tasks will require an additional 210 trillion won over five years. The government plans to raise 94 trillion won through “expanded tax revenues” and 116 trillion won through “high-intensity spending efficiency” measures, in order to avoid adding to the fiscal burden. However, The Korea Daily noted that the tax expansion plan, including restoring the capital gains tax on major shareholders, faces resistance, and its prospects are uncertain; historically, past administrations have achieved little in cutting spending, making it unclear whether the funds can be fully secured. On the 13th, Lee Jae-myung used the metaphor, “If you want to harvest a stone of rice in autumn, you must borrow seeds to sow now,” hinting that the projects might be financed through government bonds.
South Korean Media Analyze Potential Risks
The JoongAng Ilbo reported that with national debt already exceeding 1,300 trillion won—an increase of 120 trillion won in the past year—large-scale borrowing could further heighten fiscal risks. The Seoul Shinmun also noted that while the strategies are premised on government fiscal investment, private capital participation will be equally essential. However, in the current climate—where revisions to the Commercial Act, the “Yellow Envelope Act,” and other labor-management legislation have dampened business confidence—mobilizing private-sector enthusiasm will not be easy.
At the same time, South Korean outlets have raised concerns about obstacles at the execution level. The KyungHyang Shinmun argued that while the plan is broad in scope and carries a strong reformist tone, its grand objectives may be difficult to realize without a clear implementation roadmap. An editorial in The Korea Daily warned that without clear priority-setting and departmental accountability, the initiative risks becoming little more than a set of slogans, urging the removal of low-priority or highly contentious projects.
Beyond funding and execution, the Seoul Shinmun criticized the government for failing to announce an organizational restructuring plan alongside the policy package, suggesting the omission may be tied to interdepartmental turf battles. If the government’s structural outline remains unsettled for too long, it could undermine the execution of national policy. The paper commented that to avoid repeating the pattern of past administrations—“beautiful plans, poor implementation”—the Lee Jae-myung administration must quickly set policy priorities, coordinate between government departments and the private sector, and establish a flexible yet detailed execution plan to ensure that national policy tasks yield tangible results.
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