Lee signals prosecution reform before Chuseok

President Lee Jae-myung said on the 3rd that the need for prosecutorial reform has grown, noting that the prosecution has, in a sense, brought it upon itself. He added that it would be possible to outline the framework for institutional reform before the Chuseok holiday. On real estate policy, he described recent lending restrictions as “just a preview” and signaled the possibility of stronger regulations if housing prices fail to stabilize.

Marking his 30th day in office, President Lee held his first press conference at the state guesthouse of the presidential office, outlining his positions on reforming power institutions, trade negotiations with the United States, and real estate measures. Regarding prosecutorial reform, Lee said, “Judicial reform, including the reform of the prosecution, is a critically important and practical task.” He emphasized the need to separate investigative and prosecutorial powers, stating there is a consensus that a single authority should not hold both.

When asked about the Democratic Party’s push to complete prosecutorial reform before Chuseok, he said, “Prosecutorial reform is a task for the National Assembly, and I will respect its decision.” However, he added that the government’s role is to “minimize the resulting conflicts and side effects.” While he agreed with calls for swift reform, he stressed the importance of measures to prevent disruptions in investigations.

On South Korea’s trade negotiations with the United States, Lee acknowledged the difficulty of concluding the talks, particularly over tariffs. “It is clear that tariff negotiations are far from easy,” he said, adding, “I cannot say with certainty that we will conclude them by the 8th.” This suggests that a deal may not be reached before the expiration of the mutual tariff suspension on that date. He also noted, “Both sides have yet to clearly define what they want,” and said efforts are underway to identify more agenda items to advance the talks.

Regarding the recent announcement of stronger lending regulations, President Lee reiterated twice that they were “merely a preview.” He explained that speculative demand is severely distorting the real estate market, and the government is considering significant measures to change the trend. “There are still many tools available, both for expanding supply and suppressing demand,” he said. However, on the idea of designating additional new towns, he warned, “It is like drinking saltwater to quench your thirst,” and suggested reusing existing residential land instead of developing only new sites.

Reflecting on his first month in office, Lee said, “It seems the stock market is improving. I believed that institutional reforms, such as amending the Commercial Act and cracking down on stock manipulation, would help stabilize the market, and I am glad to see those expectations reflected.” He pledged to usher in the “KOSPI 5,000 era” by promoting capital market advancement.


Hoon-Sang Park tigermask@donga.com