[Editor’s Note] The local elections held on June 3, 2026, signify more than just a reshuffling of local power. This election was the first nationwide political event since the inauguration of President Lee Jae-myung's administration and serves as a critical juncture for the future direction of national governance and the political landscape in South Korea. A notable shift in voter interests was observed, with issues such as the economy, industry, job creation, housing, artificial intelligence (AI), and regional development taking center stage, contrasting with past elections that were heavily influenced by regime judgment and regionalism. This article explores the transformative challenges facing the second term of the Lee Jae-myung administration in the political, economic, and industrial sectors.
"I will make 2026 the year when the bold dream of an 'irreplaceable South Korea' begins, a country that no other nation can substitute," President Lee Jae-myung stated during a press conference on June 8, 2026, marking his first year in office. He emphasized that South Korea would leverage its experiences, capabilities, values, and the national energy to overcome crises to usher in a new era of the 'K-Initiative.'
While the 1980s were characterized by democratization and the 2000s by the information and internet revolution, the 2020s are poised to be defined by advanced industries, particularly those represented by AI.
President Lee articulated a clear vision, declaring, "We will be the first country to fully integrate AI into industry and daily life." To achieve this, he outlined four national goals: 1) to become a 'super-gap industrial powerhouse' where all citizens and regions share growth opportunities; 2) to establish a global diplomatic and security powerhouse that safeguards peace and national pride; 3) to ensure a society governed by agreed norms and rules; and 4) to create a government that saves lives.
Focusing on the first goal of becoming a super-gap industrial powerhouse, President Lee pledged to continuously discover and nurture 'global super-gap growth engines' beyond just the semiconductor sector.
In the recent local elections, various regions presented distinct future strategies. Chungcheong proposed a semiconductor and advanced industry belt, Busan aimed to become a global financial hub, Ulsan focused on future mobility industries, Daegu highlighted robotics, and Gwangju identified future mobility and AI as strategic industries.
Notably, North Jeolla is emerging as a significant area, exploring new growth strategies centered around physical AI and renewable energy. Physical AI requires extensive industrial land, abundant power, and a foundation in advanced manufacturing, conditions that Saemangeum largely meets. The region also boasts a competitive cost structure compared to the capital area.
If the national AI strategy aligns with regional balanced development efforts, North Jeolla could become a testing ground and forward base for South Korea's physical AI industry. This issue extends beyond North Jeolla; it involves reshaping the industrial map of South Korea. While the Gyeongbu axis was the center of industrialization in the past, a new industrial axis may emerge in the AI era, with North Jeolla connecting Saemangeum, Gunsan, Iksan, and Jeonju as a new national growth hub.
The governance of the Lee Jae-myung administration is expected to evolve into a 'national strategic project' rather than merely economic policy. While the Park Chung-hee administration laid the groundwork for an industrial nation through heavy and chemical industries, the Kim Dae-jung administration established the foundation for a digital powerhouse through the IT revolution. The Roh Moo-hyun administration promoted innovation cities and balanced development policies, and the Moon Jae-in administration attempted a digital New Deal.
President Lee stated that he is making strides toward 'growth for all.' He emphasized that the achievements and opportunities generated by the collective capabilities of the community should flow to small and medium-sized enterprises and be evenly distributed across all sectors, leading to tangible changes in the lives of all citizens.
The nomination of Han Seung-sook, Minister of Small and Medium Enterprises and Startups, as the new Prime Minister candidate on June 7 reflects this philosophy. Han stated on June 8, "In the face of an industrial restructuring accelerated by AI and a global complex crisis, I will focus on driving the AI transformation and accelerating innovation, ensuring that the benefits lead to opportunities and growth for all South Korean citizens. I will approach this with a sense of mission and dedication."
With the foundation laid over the past year, the administration aims to deliver substantial results in its second year, prioritizing the ability to swiftly implement key policies over political considerations. Han's background in the IT sector, including her tenure as CEO of Naver, is expected to enhance her understanding of the significant national goal of 'AI transformation.'
* This article has been translated by AI.
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