South Korea has entered a second national transition period.
The local elections held on June 3, 2026, were not merely a reorganization of local power. This election marked the first nationwide political event since the inauguration of the Lee Jae-myung administration and served as a historical turning point indicating the future direction of South Korea's political, economic, and industrial order. Based on the election results, the Democratic Party of Korea effectively secured dominance across metropolitan and local governments as well as local councils, marking a significant victory. However, the true significance of this election lies not in the outcomes themselves but in the shift in power structure.
It is rare in South Korean political history for executive, legislative, and local powers to be largely consolidated under the same political force. The Kim Dae-jung administration faced a divided government, while the Roh Moo-hyun administration experienced the tumult of impeachment. The Moon Jae-in administration achieved significant victories in local and general elections but still faced strong opposition. In contrast, the current political environment is markedly different, with a structure forming where the central government, National Assembly, and many local governments are aligned.
Politically, this can be seen as the beginning of the 'second term' of the Lee Jae-myung administration. Although the presidential term remains unchanged, the political foundation and policy momentum are significantly stronger than at the start of the administration. Local elections typically serve as a mid-term evaluation of the ruling government; however, this election yielded results closer to a reaffirmation rather than a judgment. The public appears to have chosen to give the current government more opportunities to pursue its agenda for the time being.
However, the concentration of power always carries dual implications. As political obstacles diminish, responsibilities increase. In the past, delays in policy could be attributed to opposition and legislative barriers, but the situation has changed. The public now demands economic results over political justifications, seeking tangible outcomes in job creation, income stability, housing security, and regional development. The next two to three years are likely to be a period where results take precedence over politics for the Lee Jae-myung administration.
One of the most significant changes following this local election is the shift of the political focus toward AI and industrial policy. While past political discourse revolved around democratization, industrialization, progressivism versus conservatism, and welfare versus growth, national competitiveness and future industries have emerged as core issues. Young people are discussing job creation, while businesses are focused on AI and semiconductors. Local governments are addressing regional decline and the rebuilding of industrial bases. The frequent mention of AI during the election process is no coincidence.
AI represents more than just a technological revolution; it signifies a civilizational shift comparable to the industrial revolution. In the 18th century, Britain dominated the world with steam engines, while in the 20th century, the United States led the global economy with automobiles, oil, and semiconductors. By the mid-21st century, AI is likely to become the key driving force of the world. The challenge for South Korea is that it currently faces one of the most critical opportunities in its history.
The United States is building an AI ecosystem centered around companies like NVIDIA, Microsoft, Google, and Amazon. China is challenging for AI supremacy through a national mobilization system. Japan is pursuing semiconductor revival as a national project, while Europe is simultaneously developing AI regulations and industrial policies. The world is currently engaged in a silent AI war.
South Korea stands at the center of this monumental conflict. The time for choices has passed; it is now time for action. Failing to capitalize on AI means missing out on future industries, and missing out on future industries equates to losing national competitiveness. This is why the Lee Jae-myung administration is placing AI, semiconductors, and advanced industries at the core of its national strategy.
Consequently, future governance is likely to evolve into a national competitiveness project rather than mere economic policy. While the Park Chung-hee administration laid the foundation for an industrial nation through the promotion of heavy and chemical industries, the Kim Dae-jung administration established the groundwork for a digital powerhouse through the IT revolution. The Roh Moo-hyun administration pursued innovative cities and balanced development policies, and the Moon Jae-in administration attempted a digital New Deal. Now, the AI national strategy being pursued by the Lee Jae-myung administration could become a national project that determines South Korea's next 30 years.
At the heart of this strategy is semiconductors. The starting point of the AI revolution ultimately lies in semiconductors. AI models require immense computational power, which is enabled by advanced semiconductors. South Korea possesses world-class competitiveness in the memory semiconductor sector, with Samsung Electronics and SK Hynix already leading the global market. However, the future will not be determined solely by memory. The competitive landscape is expanding to include AI-specific chips, system semiconductors, advanced packaging, power semiconductors, and next-generation computing technologies.
While it is significant that South Korea is the world's leading memory powerhouse, what will be even more crucial is how much of the entire value chain of the AI era it can capture. This is why the government designates semiconductors as a national strategic industry.
Energy is also emerging as a key pillar of national strategy. Many people perceive AI as a software industry, but it is actually closer to the power industry. We are entering an era where a single data center consumes as much electricity as an entire small city. Future competition will likely hinge not only on who has the superior AI model but also on who can secure a more stable power grid.
Thus, nuclear power, renewable energy, hydrogen economy, and power grid development are not merely environmental policies but industrial policies. Power is the new oil of the AI era, and data centers are the new factories. Power grids are the new highways of the AI era. For South Korea to become an AI powerhouse, it must succeed not only in semiconductors but also in energy strategy.
Another powerful message from this local election is the rise of local regions. South Korea has long maintained a growth strategy centered on the capital region. While this has resulted in economic expansion, it has also exacerbated issues of overcrowding in the capital and regional decline. There is now a growing call to change the very model of national development.
The '5 poles, 3 special' strategy emphasized by the Lee Jae-myung administration can be understood within this context. A significant portion of the national budget and industrial projects is likely to be invested in fostering regional growth hubs. Chungcheong is emerging as a center for semiconductors and advanced industrial belts. Busan aspires to become a global financial and logistics hub. Ulsan is attempting to transform into a center for future mobility industries. Daegu is nurturing the robotics and future manufacturing sectors. Gwangju aims to combine AI with future automotive industries.
And then there is Jeonbuk.
Jeonbuk has often been viewed as a relatively neglected region in South Korea's industrialization process. However, paradoxically, this may be its greatest opportunity, thanks to the AI revolution.
Many people understand AI as a software industry, but the future of AI will walk into the real world. It will manifest as humanoid robots, autonomous vehicles, and smart factories. This is what is known as physical AI.
Physical AI requires extensive industrial land, abundant power, and a foundation in advanced manufacturing. Saemangeum possesses many of these conditions. Its strengths in renewable energy and relatively lower cost structure compared to the capital region also enhance its competitiveness. If the national AI strategy aligns with regional balanced development strategies, Jeonbuk could become a testing ground and forward base for South Korea's physical AI industry.
This issue is not solely about Jeonbuk; it is about redrawing South Korea's industrial map. While the center of the industrialization era was the Gyeongbu axis, a new industrial axis may form in the AI era. The Jeonbuk region, connecting Saemangeum, Gunsan, Iksan, and Jeonju, has the potential to emerge as a new national growth hub.
Of course, challenges are significant. There is also the potential for new conflicts between labor and businesses. Discussions around extending retirement age, mandating retirement pensions, protecting platform workers, and implementing a 4.5-day workweek, along with labor rights expansion, reflect the current trends. However, maintaining corporate competitiveness remains crucial. South Korea's economy is still export-driven, with semiconductors, automobiles, shipbuilding, and batteries supporting the national economy. Ultimately, South Korean society may face the task of creating a new social compromise model between labor and capital.
Politically, challenges remain. The People Power Party faces not just a simple defeat in this election but questions about its very existence. Where will conservatism go after impeachment? Who will take on new leadership? Various figures such as Oh Se-hoon, Han Dong-hoon, Ahn Cheol-soo, Yoo Seung-min, and Won Hee-ryong are mentioned, but a dominant focal point has yet to emerge. The next two to three years are likely to be a time for rebuilding conservatism.
In conclusion, South Korea stands at the brink of a second national transition. If 1987 marked the era of democratization, 1997 was the era of structural reform, and the 2000s represented the information revolution, the period following 2026 is likely to be characterized by the AI revolution, advanced industries, energy transition, and local transformation.
The June 3 local elections were the starting point for this monumental change.
Politics is already preparing for the next election. However, the public is more concerned about the next economic opportunities than the next election. South Korea is at a historical inflection point where the AI revolution, local transformation, industrial supremacy competition, and energy restructuring are all occurring simultaneously.
This local election was not just a political event; it was a national question about the direction South Korea will take.
And now, the real competition begins.
Can the Lee Jae-myung administration lead South Korea to become an AI powerhouse based on a strong political foundation? Can local regions create new growth engines? Will businesses survive in the global competition? Will the lives of the people actually improve?
The next four years are likely to be a crucial time in modern South Korean history.
In the future, historians may record the June 3, 2026, local elections not merely as a local election but as the political starting point for South Korea's serious engagement with AI national strategy and local transformation.
This is the true historical significance of this election.
* This article has been translated by AI.
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