Seoul: The Democratic Party (DP) recently held a meeting with the Federation of Korean Industries (FKI) at the National Assembly, marking the first official dialogue between the two entities since September 2015. During the meeting, DP leader Lee Jae-myung underscored the need to minimize political obstacles to business activities, emphasizing the role of companies in enhancing national wealth. In agreement, FKI Chairman Ryu Jin highlighted the importance of corporate investment as a catalyst for growth.
According to Yonhap News Agency, the meeting surfaced key issues such as the Special Semiconductor Act and commercial law, where differences remain between the two parties. On the same day, the Bank of Korea reported that Korea’s per capita Gross National Income (GNI) for the previous year was $36,624, a minimal increase of 1.2 percent from the year before. This statistic underscores the challenge posed by BOK Governor Rhee Chang-yong’s assertion that “1 percent yearly growth is our true capability,” necessitating structural reforms to elevate the nation’s economic standing.
The discussion also touched upon the recent comments by Lee Jae-myung regarding the concept of “K-Nvidia,” suggesting that if a company like Nvidia were to be established in Korea with substantial public ownership, reliance on taxes could be reduced. Despite criticism from the ruling party labeling the idea as “socialist,” Lee’s remarks draw parallels with Taiwan’s TSMC, which transitioned from a state-owned enterprise to a privatized entity. The Korean government’s 50 trillion won Advanced Strategic Industry Fund, aimed at investing in sectors like semiconductors and AI, reflects a similar strategy of state equity investment.
However, skepticism towards Lee and the DP persists, especially when the party supports pro-labor policies like the Yellow Envelope Act while advocating for market growth in discussions with businesses. Former Socar CEO Lee Jae-woong criticized the DP for its past actions, such as the “Tada ban,” which hindered innovative companies. This inconsistency contributes to the frustrations voiced by the business community.
To overcome these challenges, the DP is encouraged to engage more deeply with business sector concerns. As the saying goes, “A politician’s credibility should be judged by their actions, not just their words.” By implementing practical measures that address corporate issues, the party can enhance its credibility and reduce criticism of initiatives like the K-Nvidia vision.