Rep. Cho Jung-sik of the Democratic Party, elected as the Speaker of the 22nd National Assembly, delivers his acceptance speech during the National Assembly plenary session on June 5. [Photo=Yonhap News]
Following the June 3 local elections, significant political, economic, and industrial transformations are anticipated in South Korea, one year after the inauguration of the Lee government. With no nationwide elections scheduled for the next two years, the government can focus on its national agenda without political constraints. There is a growing consensus among lawmakers and analysts that an active National Assembly must lead these changes.
According to political sources on June 9, the national balanced growth policy, known as '5 Geuk 3 Teuk,' is expected to gain momentum with the establishment of new local governments next month. This policy aims to promote balanced development centered around five super-regional areas (Seoul, Southeast, Daegu-Gyeongbuk, Central, and Honam) and three special autonomous provinces (Jeju, North Jeolla, and Gangwon). The '5 Geuk 3 Teuk' initiative was a key topic in the recent local elections. The Gwangju and Jeonnam regions elected a unified mayor, and discussions on administrative integration in Daegu and Gyeongbuk, as well as the creation of a mega-city encompassing Busan, Ulsan, and Gyeongnam, are likely to materialize following the elections.
Emerging issues such as artificial intelligence (AI) and semiconductors have also become critical concerns for lawmakers, as competition to secure manufacturing hubs intensifies across regions. The central and local governments are expected to act swiftly to attract businesses in line with the national balanced growth policy.
Attention is also focused on potential shifts in the direction of tax authorities, competition authorities, and labor authorities regarding the overall economic policy of the country. The recent remarks by Kim Yong-beom, head of the Presidential Policy Office, regarding the distribution of excess profits by companies carry significant implications in this context. The business community is closely monitoring the possibility of changes in the regulatory framework by relevant authorities.
There is increasing support for the argument that an active National Assembly must lead the national transformation. Many policies need to be institutionalized through legislation, necessitating diligent lawmaking and amendments in the Assembly. The ruling Democratic Party's claim to dominate the standing committees in the second half of the National Assembly is related to this issue. Within the party, there is a growing sentiment that it is essential to secure economic-related standing committees (such as the Political Affairs Committee, the Finance Committee, and the Industry Committee), which were criticized for being largely inactive during the first half of the Assembly.
Experts also advise that the 22nd National Assembly must end the 'political time.' Kim Jong-seok, a distinguished professor at the State University of New York at Korea and former chair of the Regulatory Reform Committee, stated in a conversation with Aju Economy that "there have been populist elements ahead of elections," emphasizing the need for difficult yet necessary reforms that would enhance the long-term soundness of the national economy, such as stabilizing financial markets, addressing real estate market polarization, and labor reform.
He further noted, "The National Assembly should prioritize economic issues and legislate swiftly without conflicts, considering the upcoming general election schedule. This year's regular session is the right time to achieve results."
Political analyst Park Sang-byeong suggested that if cooperation between the ruling and opposition parties proves difficult, the ruling party should utilize its majority to deliver results. He stated, "The Democratic Party is the majority party, and it cannot claim that it was unable to act because of opposition resistance. If cooperation is impossible, it should resolve issues using its majority and then be evaluated in the next general election." He added, "About 60% of national governance should focus on the livelihood economy. The Democratic Party will also prepare for the next general election based on its achievements in this area."
According to political sources on June 9, the national balanced growth policy, known as '5 Geuk 3 Teuk,' is expected to gain momentum with the establishment of new local governments next month. This policy aims to promote balanced development centered around five super-regional areas (Seoul, Southeast, Daegu-Gyeongbuk, Central, and Honam) and three special autonomous provinces (Jeju, North Jeolla, and Gangwon). The '5 Geuk 3 Teuk' initiative was a key topic in the recent local elections. The Gwangju and Jeonnam regions elected a unified mayor, and discussions on administrative integration in Daegu and Gyeongbuk, as well as the creation of a mega-city encompassing Busan, Ulsan, and Gyeongnam, are likely to materialize following the elections.
Emerging issues such as artificial intelligence (AI) and semiconductors have also become critical concerns for lawmakers, as competition to secure manufacturing hubs intensifies across regions. The central and local governments are expected to act swiftly to attract businesses in line with the national balanced growth policy.
Attention is also focused on potential shifts in the direction of tax authorities, competition authorities, and labor authorities regarding the overall economic policy of the country. The recent remarks by Kim Yong-beom, head of the Presidential Policy Office, regarding the distribution of excess profits by companies carry significant implications in this context. The business community is closely monitoring the possibility of changes in the regulatory framework by relevant authorities.
There is increasing support for the argument that an active National Assembly must lead the national transformation. Many policies need to be institutionalized through legislation, necessitating diligent lawmaking and amendments in the Assembly. The ruling Democratic Party's claim to dominate the standing committees in the second half of the National Assembly is related to this issue. Within the party, there is a growing sentiment that it is essential to secure economic-related standing committees (such as the Political Affairs Committee, the Finance Committee, and the Industry Committee), which were criticized for being largely inactive during the first half of the Assembly.
Experts also advise that the 22nd National Assembly must end the 'political time.' Kim Jong-seok, a distinguished professor at the State University of New York at Korea and former chair of the Regulatory Reform Committee, stated in a conversation with Aju Economy that "there have been populist elements ahead of elections," emphasizing the need for difficult yet necessary reforms that would enhance the long-term soundness of the national economy, such as stabilizing financial markets, addressing real estate market polarization, and labor reform.
He further noted, "The National Assembly should prioritize economic issues and legislate swiftly without conflicts, considering the upcoming general election schedule. This year's regular session is the right time to achieve results."
Political analyst Park Sang-byeong suggested that if cooperation between the ruling and opposition parties proves difficult, the ruling party should utilize its majority to deliver results. He stated, "The Democratic Party is the majority party, and it cannot claim that it was unable to act because of opposition resistance. If cooperation is impossible, it should resolve issues using its majority and then be evaluated in the next general election." He added, "About 60% of national governance should focus on the livelihood economy. The Democratic Party will also prepare for the next general election based on its achievements in this area."
* This article has been translated by AI.
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