SEOUL \u2013 South Korean President Lee Jae Myung vowed to ramp up investment for a range of future growth engines and to leverage excess tax revenue generated by the surging semiconductor industry for the wider good.\u00a0<\/p>\n
Speaking at a press conference marking the first anniversary of his presidency on June 8, Lee pledged to move beyond semiconductors for driving the nation\u2019s economy by fostering world-leading competitiveness across a range of industries.<\/p>\n
He said his government would soon unveil a large-scale investment plan that would represent a \u201cfundamental transformation\u201d of the nation\u2019s growth strategy.<\/p>\n
\u201cAbove all, the fruits of growth must not remain confined to a select few corporations, regions or sectors,\u201d he said in prepared remarks.<\/p>\n
The comments\u00a0point to Lee\u2019s efforts to broaden South Korea\u2019s industrial base when booming semiconductor exports have become a key driver of economic growth.<\/p>\n
His appointment of a former tech executive to become prime minister<\/a> underscores that drive.<\/p>\n At the same time, surging chip sales have also become a source of resentment among those not benefiting from soaring profits and bonuses.<\/p>\n The concentration of investment bets on the nation\u2019s chip giants also creates a key vulnerability in a stock market that Lee has tried to propel upward.<\/p>\n The president also touched on geopolitical concerns, calling for continued efforts toward denuclearisation of the peninsula.<\/p>\n As Lee spoke, North Korean leader Kim Jong Un was preparing to welcome Xi Jinping for his first visit to Pyongyang in seven years.<\/p>\n On the gains and opportunities generated by the AI and tech sector, Lee said they should translate into tangible improvements in people\u2019s daily lives by extending to small- and medium-sized enterprises and startups, and spreading across regions and sectors.<\/p>\n Lee also said the government will determine how to most effectively utilise surplus tax revenues generated by the semiconductor industry and ensure that the National Growth Fund fulfils its purpose of delivering \u201cgrowth for all\u201d.<\/p>\n The government-backed fund is South Korea\u2019s flagship investment initiative to channel 150 trillion won (S$123.4 billion) into advanced industries, such as chips and artificial intelligence, over five years.<\/p>\n \u201cWe think the excess tax should be primarily used to invest in future generations and strengthen Korea\u2019s long-term growth potential,\u201d Lee said.<\/p>\n On foreign policy, Lee said his administration would seek concrete results from diplomatic and security initiatives including the introduction of nuclear-powered submarines and an early transition of the wartime operational control from the US.<\/p>\n South Korea unveiled a road map in May to develop nuclear-powered submarines<\/a> and deploy the first vessel by the late 2030s, after Lee secured President Donald Trump\u2019s backing during a summit in 2025.<\/p>\n Progress since then appears to have been slow, with the sensitive issue of supplying nuclear fuel for the submarines among the complications.<\/p>\n