Seoul: At his press conference marking 100 days in office, President Lee Jae Myung pledged to be "a president for all the people" and to pursue politics and governance focused on unity. He described the past 100 days as a time for recovery and normalization and expressed his vision for the remaining four years and nine months to bring growth that shares results across society. In a climate of partisan confrontation, the president's emphasis on integration is welcome.
According to Yonhap News Agency, Lee's approach to prosecutorial reform also reflected this spirit. He suggested that disputes over reform be resolved through a year of discussion among ruling and opposition parties, victims, and prosecutors, to ensure that investigations do not become lax. Concerns arose, however, over his response to the Democratic Party's push to establish a special tribunal for insurrection cases. Lee questioned the constitutionality of such a move and emphasized the need to respect the National Assembly, which holds the people's delegated sovereignty. However, this stance raises concerns about the potential for the legislature to act above the judiciary.
The Supreme Court has already submitted an opinion to lawmakers highlighting the constitutional risks of the proposal. It emphasized that case assignment is a judicial prerogative, and allowing the legislature or the Korean Bar Association to designate judges for specific cases could infringe upon judicial independence. The court also warned against the designation of special warrant judges, stressing the importance of neutrality in decisions that restrict individual liberty. Under the Constitution, only military courts are permitted as special tribunals; other forms are generally prohibited. Democratic Party lawmaker Park Hee-seung, a former judge, questioned who would be responsible if rulings by such a special tribunal were later judged unconstitutional.
Lee also expressed opposition to the bipartisan agreement not to extend the mandate of the special counsel investigating the December martial law crisis, questioning how "truth-finding" could be traded for a government reorganization bill. With Democratic Party leader Jung Cheong-rae backing him and pressure from hard-line supporters, the party pushed through a stronger set of three special counsel laws, breaking the earlier deal. True cooperation depends on negotiation and compromise. If the ruling bloc relies solely on majority power, the president's commitment to unity risks sounding hollow.
On the economic front, Lee sent a more pragmatic signal by confirming that the threshold for capital gains tax on large shareholders will remain at 5 billion won (US$3.6 million) per stock. This decision aims to avoid further turmoil in financial markets and aligns with his ambition to see the Kospi reach 5,000. He also proposed raising the inheritance tax deduction from 1 billion won to 1.8 billion won. With average apartment prices in Seoul now exceeding 1.3 billion won, outdated brackets and deductions have indeed increased burdens on the middle class.
However, Lee's suggestion of further amendments to the Commercial Act has raised alarm. Proposals to expand directors' fiduciary duty to shareholders and adopt cumulative voting could significantly restrict management rights and discourage investment. By framing the changes solely as a check on dominant shareholders while ignoring the need to ease criminal liability for breach of trust or bolster takeover defenses, the administration risks pursuing an unbalanced policy that overlooks concerns in the business community.