President Lee Jae-myung said regional investment must not be approached in a divisive way during an investment briefing in Asan [1].
The statement comes as the administration seeks to counter opposition from local governments and political rivals regarding three state-led “mega-projects” [2]. By addressing these concerns, the president aims to stabilize the rollout of large-scale industrial developments and dispel rumors that the state is coercing private firms into funding them.
Speaking in Asan, South Chungcheong Province, on June 30, 2024 [1], Lee addressed a gathering that included representatives from Samsung, SK Hynix, and Celltrion. The president said companies should be able to settle in the best possible locations to ensure economic efficiency.
Lee addressed accusations that the government has used its influence to force corporate participation in these regional initiatives. He said the government is not simply giving out gifts and that claims of the state pressuring companies to invest are not true [1].
These comments are intended to neutralize friction between the central government and regional authorities who may feel sidelined or pressured by the administration's industrial strategy. The three mega-projects [2] represent a significant pillar of the current economic plan, requiring high levels of cooperation between the public sector and the nation's largest conglomerates.
Throughout the briefing, Lee said the goal is to foster a productive environment for business growth rather than a political tool for regional division. He said that a divisive approach to where companies are located would be counterproductive to the national interest [1].
“"Regional investment must not be approached in a divisive way."”
President Lee's public denial of corporate coercion suggests that the administration is facing significant political headwinds regarding its industrial policy. By framing the 'mega-projects' as efficiency-driven rather than politically mandated, the government is attempting to maintain its relationship with South Korea's largest conglomerates while silencing critics who argue that the state is overstepping its role in the private market.
