Lee pledges support as business leaders voice alarm

President Lee Jae-myung met with leaders of South Korea’s five largest conglomerates and six major economic organizations on June 13, marking his first direct engagement with the business community since taking office. Emphasizing that companies are the backbone of the national economy, Lee said the government must provide active support and cooperation to help businesses drive growth and conduct operations effectively.

Lee underscored his commitment to regulatory reform, pledging to eliminate outdated rules created for administrative convenience. He also vowed to pursue practical and flexible trade policies to respond to the tariff war initiated by the United States.

The timing of the meeting, just nine days into Lee’s presidency, which began without a formal transition committee, reflects the urgency of Korea’s economic challenges. By comparison, the Moon Jae-in administration did not meet with top business leaders until six weeks after its inauguration.

U.S. tariffs on key Korean exports remain a pressing concern. With levies of 25 percent on cars and parts, and 50 percent on steel and aluminum, the outlook for Korea's economy hinges on the outcome of the first round of Korea-U.S. trade negotiations, set to conclude by July 8. Failure to adjust these rates could trap Korea’s economy in near-zero growth for the first year of Lee’s term. Meanwhile, Israel’s attack on Iran’s nuclear facilities has further destabilized the global energy market, adding to external risks.

Business leaders echoed Lee’s sense of urgency. Samsung Electronics Chairman Lee Jae-yong described the situation as a national crisis on par with the 1997 Asian financial crisis. He called for a long-term strategy to secure growth engines for the next 20 to 30 years. SK Group Chairperson and Korea Chamber of Commerce and Industry President Chey Tae-won said businesses are struggling to make decisions amid fluctuating U.S. trade threats. He urged the government to remain attentive to the concerns of the private sector.

The current realignment of global trade policy marks the most serious external risk Korea has faced since attaining advanced economy status. Governments worldwide are adjusting foreign policy tools and easing domestic regulations to protect their own companies. One of the key topics at the upcoming G7 Summit will be how to minimize damage to national industries.

Emerging high-tech sectors such as artificial intelligence now require massive investment with limited short-term returns, making them increasingly dependent on public-sector support. As a proponent of what he calls a “practical market economy,” President Lee is expected to serve as a "growth fixer" over the next five years by encouraging innovation through regulatory reform and close public-private cooperation.