Three Years Into Lee's Presidency, Early Issues Remain Hotly Contested

Although President Lee Jae-myung is observing his third major holiday since taking office, judicial risks, prosecution and judicial reforms, and Korea-U.S. trade issues that emerged as major policy challenges immediately after his inauguration remain key pending issues.

According to political circles on the 22nd, while the specific points of contention surrounding these issues have changed compared to the time of inauguration, related legislation, trials, and Korea-U.S. consultations continue to this day.

First, regarding President Lee's judicial risks, while all trials underway after his inauguration have been halted, disputes over the "fabricated indictment" prosecutor general and the withdrawal of prosecution have ensued.

At the time of his inauguration, President Lee was standing trial in five criminal cases: the remand trial for violations of the Public Official Election Act, cases involving the Daejang-dong, Baekheun-dong, and Wiryae developments, Seongnam FC, perjury instigation, North Korean money transfers, and misuse of the Gyeonggi Province corporate card.

After taking office, the courts repeatedly postponed trial dates, and when the North Korean money transfer case was postponed on July 22 last year, all five of President Lee's criminal trials were suspended. The court handling the North Korean money transfer case cited the President's constitutional duties and the continuity of state administration as its reasons.

Subsequently, the focus in political circles shifted to the so-called "fabricated indictment prosecutor general." In particular, controversy arose over the possibility of withdrawal of prosecution in cases related to President Lee, centered on provisions allowing the prosecutor general to receive and dispose of existing indictment cases.

At a press conference on the 18th, President Lee emphasized the need for truth-finding regarding accusations of fabricated indictments while requesting that the National Assembly "delete provisions regarding the transfer and disposition of existing indictment cases and focus solely on fact-finding."

Prosecution and judicial reforms have also continued from institutional reforms initiated shortly after the President took office.

Democratic Party members introduced a prosecution reform bill on June 11 last year, one week after President Lee's inauguration, which included the dissolution of the Prosecution Service and the establishment of the Public Prosecutors Office and the Serious Crimes Investigation Agency.

Subsequently, the dissolution of the Prosecution Service and the establishment of the Public Prosecutors Office and the Serious Crimes Investigation Agency were codified, and the new criminal justice system will launch on the 2nd of next month.

The government held a State Council meeting on that day and approved revised legislation for 51 laws related to the criminal justice system overhaul, including amendments to the Serious Crimes Investigation Agency Organizational Management Act, which would allow prosecutors at the Public Prosecutors Office to request supplementary or reinvestigation by the Serious Crimes Investigation Agency for seven major crimes targeting the socially vulnerable.

Conflicts involving the judicial branch continue.

Chief Justice Cho Hee-dae stated that the Presidential Office's request for resubmission of a Supreme Court justice candidate has no constitutional basis and cannot be accepted. The Presidential Office countered that this represents a view of nullifying the President's constitutional authority to appoint supreme court justices.

The Korea-U.S. trade issue has also shifted its focus from tariff negotiations initiated after the President's inauguration to the implementation of investment in the United States.

Through negotiations with the United States last July, the government lowered the reciprocal tariffs initially proposed at 25% to 15%, and agreed to set automobile and parts tariffs at 15% as well. In this process, Korea presented a plan for U.S. investment totaling $350 billion, including a $150 billion shipbuilding cooperation investment.

The two countries subsequently agreed on detailed matters including investment structure and profit sharing in October last year, and in November signed a memorandum of understanding (MOU) covering the implementation of $200 billion strategic investment and $150 billion shipbuilding cooperation investment.

However, in the process of implementing the agreement, consultations regarding actual investment targets and conditions are still ongoing. The Ministry of Trade, Industry and Energy stated on the 9th regarding U.S. investment that "consultations between Korea and the United States are currently underway," and explained that the scale of strategic investment will not exceed $200 billion in accordance with the MOU.

President Lee also disclosed the fact of renegotiations at a press conference on the 18th, stating regarding the U.S. investment issue, "While it is said that agreement has been almost reached, there are some parts that are difficult to agree with." He explained that profit-sharing and the handling of business losses are points of contention in specific investment consultation processes.

Three pending issues stemming from President Lee's criminal trials, prosecution reform, and U.S. tariff pressure at the time of inauguration are now manifesting as the "fabricated indictment prosecutor general" and withdrawal of prosecution, the implementation of a new criminal justice system and conflicts involving the judiciary, and U.S. investment negotiation issues.

A political circle official said, "Rather than being resolved over time, the pending issues that have continued since President Lee's inauguration have changed their form and continue to serve as a burden on state administration. If these are difficult to resolve in the short term, it is necessary to find political compromises or leave matters to their course, and to concentrate the administration's capabilities on creating tangible achievements for the government."