[Joo Young-jin's News Briefing]

When citing this interview, please credit SBS 'Joo Young-jin's News Briefing'. Copyright belongs to SBS.

■ Broadcast: SBS <Joo Young-jin's News Briefing> Mon–Fri (14:00–15:20)
■ Host: Anchor Joo Young-jin
■ Guest: Lee Kwang-jae, Democratic Party Lawmaker
--------------------------------------------

● Interview with Democratic Party Lawmaker Lee Kwang-jae

"Leave part of the budget as a fund and pursue active investments"
"Creating basic assets is more important than basic income"
"Hoping to manage like Norway's sovereign wealth fund when tax revenues are high"
"Wealth created by AI must be converted to benefit citizens' lives"
"Yong Hye-in must resign as a lawmaker to serve as minister"
"Decisive action is needed if she wants to protect basic income... She should also consider if the ministerial post fits her"
"It is time for Kim Yong-beom to step down... New figures needed to transition to the 2nd cabinet"
"If Kim Yong-beom's resignation had been announced simultaneously, newly appointed ministers would have been overshadowed"
"The nomination of candidate Lee So-young was very well done... We need to appoint young people"
"We must firmly head toward the future by placing AI aides across all ministries"

--------------------------------------------

▷ Joo Young-jin / Anchor: The regular National Assembly session has begun this year. The most important task of the regular session is passing the new year's budget. And the authority to review and decide on the budget lies with the National Assembly. Lawmaker Lee Kwang-jae, who will spearhead that work as Chair of the Special Committee on Budget and Accounts, has joined us. Welcome.

▶ Lee Kwang-jae / Democratic Party Lawmaker: Hello.

▷ Joo Young-jin / Anchor: You must be busy. It seems you are already very busy.

▶ Lee Kwang-jae / Democratic Party Lawmaker: I am busy.

▷ Joo Young-jin / Anchor: It seems the Budget Committee meets every day lately.

▶ Lee Kwang-jae / Democratic Party Lawmaker: We work until 1:00 or 2:00 in the morning.

▷ Joo Young-jin / Anchor: Until 1:00 or 2:00 a.m. What kind of settlement is currently in progress? You are settling the accounts now.

▶ Lee Kwang-jae / Democratic Party Lawmaker: We have to thoroughly settle accounts so that we can rigorously review the next budget.

▷ Joo Young-jin / Anchor: First of all, the account settlement must be done well, but the new year's budget is already making headlines for its size. At 821 trillion won, it is the largest in history.

▶ Lee Kwang-jae / Democratic Party Lawmaker: That is right.

▷ Joo Young-jin / Anchor: 821 trillion won is hard for me to even grasp.

▶ Lee Kwang-jae / Democratic Party Lawmaker: It has grown by roughly 100 trillion won with each administration.

▷ Joo Young-jin / Anchor: Every time the administration changes.

▶ Lee Kwang-jae / Democratic Party Lawmaker: Every time it changes. In the past it grew by around 70 trillion to 100 trillion won, and that is because we had an enormous amount of tax revenue coming in thanks to Samsung Electronics and SK Hynix. In that sense, we need to spend this efficiently. So on one hand, we should set aside part of it as a fund, and on the other hand, looking at the hegemony war between the US and China, even companies like Google issue corporate bonds and make bold investments. In that respect, there is a need to make aggressive investments, and we have secured such financial resources this time.

▷ Joo Young-jin / Anchor: Regarding the Future Response Fund, the opposition seems to express suspicion that the current administration is trying to use it as a kind of seed money.

▶ Lee Kwang-jae / Democratic Party Lawmaker: That is not the case at all. Just because a lot of taxes were collected does not mean we should spend it all. Isn't that right? On the other hand, if we pay off all our debt with it, when the economy slows down later—since we expect the semiconductor boom to last about three years—we cannot just take on debt again at that time. Therefore, by paying off some debt this time and holding it in the form of a fund, it will all go through National Assembly review anyway.

▷ Joo Young-jin / Anchor: The plan is to focus fund investments on future industries, youth, and regional areas.

▶ Lee Kwang-jae / Democratic Party Lawmaker: That is correct.

▷ Joo Young-jin / Anchor: But the National Assembly will have to review very carefully how it is actually going to be implemented.

▶ Lee Kwang-jae / Democratic Party Lawmaker: That is right. In any case, it is taxpayer money, and after all, semiconductors represent our security and our economy.

▷ Joo Young-jin / Anchor: That is right. Semiconductors are both security and economy.

▶ Lee Kwang-jae / Democratic Party Lawmaker: Then, bold investments are necessary in semiconductors to firmly shake off China's pursuit. On the other hand, regional areas such as Daegu-Gyeongbuk or Busan-Gyeongnam are struggling greatly. We need to make investments in robotics and similar fields in these regions. Another issue is housing, where people face hardships. We need to execute bold budget allocations for housing, and while many note that Samsung Electronics and SK Hynix are doing well, our small and medium-sized enterprises and small merchants are facing severe difficulties. We must provide support for them at this time as well.

▷ Joo Young-jin / Anchor: Regarding the new year's budget, one point that caught my attention—which was also featured in our report yesterday—is the Child Independence Fund, which deposits up to 1.2 million won per year into fund accounts for children from families below a certain income level until they turn 18 and become adults. Lawmaker Lee Kwang-jae has repeatedly proposed giving 100 million won to newborns. Have these kinds of ideas become more concrete and been included in the government's budget proposal?

▶ Lee Kwang-jae / Democratic Party Lawmaker: I believe it is definitely being reflected. There has been a debate in economics over whether it is better to provide basic income or to build basic assets for young people, and building assets is increasingly forming the consensus.

▷ Joo Young-jin / Anchor: It is better to build assets.

▶ Lee Kwang-jae / Democratic Party Lawmaker: So providing 1.5 million won each year and accumulating it with compound interest means it amounts to tens of millions of won by age 18. That is what the government has currently adopted, and in my book 'A Nation That Makes Its People Rich'...

▷ Joo Young-jin / Anchor: 'A Nation That Makes Its People Rich.'

▶ Lee Kwang-jae / Democratic Party Lawmaker: In this book, 100 million won is deposited into a sovereign wealth fund at birth. It is not handed out directly. If managed at a 7% return, it becomes 386 million won by age 20.

▷ Joo Young-jin / Anchor: That 100 million won.

▶ Lee Kwang-jae / Democratic Party Lawmaker: At 7% compound interest, it doubles in 7 years. So allowing young people to pursue a challenging life with 100 million won, and managing the remaining 286 million won for another 45 years until age 65, it grows to about 6 billion won. Then, 4 billion won is provided as retirement funds and the state recovers 2 billion won. That way, young people can live adventurous lives, and older citizens do not have to feel anxious about retirement. My argument is that we should build a nation that makes citizens' lives secure by earning money, rather than a government that simply spends money. What was adopted this time does not include the portion after age 65, but rather provides 1.5 million won annually to accumulate for young people. However, I believe that when tax revenues are abundant, if we manage this like Norway's sovereign wealth fund to ensure sustainable returns, it will benefit both youth and seniors, and above all, remain their own permanent asset.

▷ Joo Young-jin / Anchor: Norway and Nordic countries are wealthy and affluent nations, but they differ from us in that their land is not so vast yet population density is low, meaning they have small populations. In contrast, our population is relatively quite large. I wondered whether directly adopting systems from those countries in Korea would really be efficient.

▶ Lee Kwang-jae / Democratic Party Lawmaker: This system has already been started by President Trump with Trump Accounts. This is not an issue unique to our country. Assets must be created because the wealth gap is too wide. Former Prime Minister Tony Blair was the first to start this.

▷ Joo Young-jin / Anchor: In the UK.

▶ Lee Kwang-jae / Democratic Party Lawmaker: Trump Accounts and similar initiatives are starting generally across US states. There was a debate in Taiwan recently where people said, "TSMC earns so much money, but that does not translate into income for citizens. Prices keep rising because currency circulation increases." So the debate in Taiwan was to create future accounts. I think that as AI develops further, wealth will become increasingly concentrated. But Elon Musk will never provide us with a basic income. Therefore, I believe we must have a new growth model where wealth generated in this way can be converted into improving citizens' lives, while ensuring sustainability. We must strictly adhere to market principles. This comes from my own experience: during President Roh Moo-hyun's administration, I saw Singapore increasing national wealth by creating a sovereign wealth fund called 'Temasek.' So when I proposed creating a sovereign wealth fund, we had no money. I suggested using foreign exchange reserves, and everyone called me crazy. It was not long after we graduated from the IMF crisis.

▷ Joo Young-jin / Anchor: Just a few years after.

▶ Lee Kwang-jae / Democratic Party Lawmaker: I asked whether we should just hold onto it or manage it to generate returns, and Korea Investment Corporation (KIC) was eventually created. Looking at the returns over 20 years, it earned enough to match a 1% increase in the National Pension Fund. Because I have that experience, Samsung Electronics and SK Hynix are earning a lot of money right now. Next year, excess tax revenue will likely exceed 150 trillion won. So instead of spending it all at once, let us pool and invest it to protect citizens' lives and move toward the future.

▷ Joo Young-jin / Anchor: Those ideas are in your book, and they must all be reflected in this year's budget review.

▶ Lee Kwang-jae / Democratic Party Lawmaker: I have consistently advocated for it, and so far we reached the point of creating basic foundation assets for youth up to age 18. I will continue striving to achieve this so that citizens can live with peace of mind for a sustainable future, and the fruits of growth lead directly to citizens' lives.

▷ Joo Young-jin / Anchor: Lawmaker Lee Kwang-jae is known as a politician regarded for having many fresh ideas. If you wish to implement and realize these visions directly, I wonder if you might need to take on another political challenge beyond being a member of the National Assembly later on.

▶ Lee Kwang-jae / Democratic Party Lawmaker: It is not about that; I formed a research group with fellow lawmakers to continuously raise issues, and as a first milestone, a consensus has been reached that basic assets are important. But in reality, our elderly suicide rate is the highest in the world. Seniors are unprepared for retirement. The reason people in our country do not have children is because life feels precarious. Becoming conservative after age 60 is partly because income drops. Therefore, in the AI era, let us make bold ventures toward a forward-looking society and turn those achievements into better lives for citizens.

▷ Joo Young-jin / Anchor: Politicians should constantly maintain such thoughts—which ultimately requires effort. Politics must be conducted with such mindset so that citizens' lives can eventually become completely different and far better than they are today.

▶ Lee Kwang-jae / Democratic Party Lawmaker: This is my own self-reflection: within the Democratic Party, I was actually a leading growth advocate. Back then, when discussing growth, people asked why politicians should talk about it when companies are the ones driving growth. But the US, China, and the whole world are now running industrial policy. Yet while South Korea has become a top 10 country in the world, dual-income couples today cannot find a way to get by due to private education costs and other burdens. How can people live when housing prices are so high? That is why we must ensure robust growth while building a system where the fruits of growth reach the people to make it sustainable. This came from such self-reflection.

▷ Joo Young-jin / Anchor: President Lee Jae-myung also posted on social media today, citing an editorial to say that we are currently passing through a lean period of growth created by the previous administration, addressing concerns about whether welfare is somewhat lacking in the budget proposal. For now, our economy and livelihood inevitably have no choice but to be more growth-oriented.

▶ Lee Kwang-jae / Democratic Party Lawmaker: That is right. Right now, there is a hegemony war between the US and China. Many people visited the robotics competition held in Beijing a few days ago and were utterly amazed.

▷ Joo Young-jin / Anchor: There were many photo reports.

▶ Lee Kwang-jae / Democratic Party Lawmaker: Likewise, what happened to the world after the success of the Industrial Revolution in Britain? It eventually led to colonial wars. Today, the US and China are fighting a hegemony war based on a technology war, and this technology is ultimately economy, security, and diplomacy. Korea is respected because it has semiconductor and shipbuilding industries, alongside the powerful strength of its culture. There is a future for us only if we follow that path.

▷ Joo Young-jin / Anchor: Understood. Talking with Lawmaker Lee Kwang-jae always brings up many novel topics. Let me ask about current political issues. What are your thoughts on Yong Hye-in, nominee for Minister of Gender Equality and Family? Many say she should not try to hold onto both opportunities.

▶ Lee Kwang-jae / Democratic Party Lawmaker: I fundamentally believe that to serve as minister, one must resign from the National Assembly seat. Serving twice as a proportional representative lawmaker is not easy. Furthermore, to fully focus on the ministerial role, stepping down as a lawmaker is the right thing to do. On the other hand, she should also do a lot of soul-searching on whether a ministerial position truly suits her. If she thinks of the nation's youth and wants to uphold the spirit of basic income—the value she has championed—I believe she must make a decision. I hope she reflects deeply on whether a ministerial role fits her. We served on a standing committee together.

▷ Joo Young-jin / Anchor: Understood. You know well because you served on the committee together, and she should consider whether the ministerial post is right for her. But some might also argue, "Constituency lawmakers retain their parliamentary seats while serving as ministers, so why demand this only from a proportional representative?"

▶ Lee Kwang-jae / Democratic Party Lawmaker: This is her second term as a proportional representative. Moreover, so far, when proportional representatives were appointed to ministerial or political posts, stepping down was the natural custom. Lawmaker Lee Hae-min is stepping down this time as well. That is the proper way. There is a saying in life: "Do not exhaust all your good fortune at once."

▷ Joo Young-jin / Anchor: Do not exhaust all your good fortune at once. Understood. We used to hear the expression "a pyrrhic victory" often, and when nominated as a minister, it is fortunate if it turns out to be a pyrrhic victory, but sometimes it ends purely in injury.

▶ Lee Kwang-jae / Democratic Party Lawmaker: In the end, dialogue with oneself is also very important.

▷ Joo Young-jin / Anchor: Former Senior Secretary for Policy Kim Yong-beom had his resignation accepted yesterday, two days after the cabinet reshuffle was announced, effectively resulting in his dismissal. In media interviews, he requested not to use the word 'dismissal,' but various analyses are emerging over whether this signals a shift in President Lee Jae-myung's state administration and economic policy stance over the past year and three months. How do you analyze this, Lawmaker Lee?

▶ Lee Kwang-jae / Democratic Party Lawmaker: I see two aspects to it. He was scheduled to appear at the Budget Committee meeting room but did not show up. That made me think he intended to resign. On one hand, I think it was time for him to step down. Serving as senior secretary for policy for a year and three months pulls out all your hair. And the budget plan for next year has already been prepared anyway. Therefore, stepping down makes sense. Secondly, it is true that he faced criticism over controversial issues such as ETF issues in the stock market. In terms of real estate policies and other areas, a new person needs to come in to speak of new policies at a new pace for the transition to the second cabinet. I believe both aspects are present.

▷ Joo Young-jin / Anchor: There are two aspects. What the media is paying attention to is why it was not announced simultaneously. There is considerable interest in this.

▶ Lee Kwang-jae / Democratic Party Lawmaker: If announced simultaneously, Kim Yong-beom's dismissal would likely have been the bigger headline.

▷ Joo Young-jin / Anchor: That is probably how it would have been reported.

▶ Lee Kwang-jae / Democratic Party Lawmaker: And the newly appointed ministers would not have had their moment in the spotlight. What I view favorably in this cabinet appointment is that appointing Minister Lee So-young was very well done.

▷ Joo Young-jin / Anchor: There has been almost no negative coverage in the media regarding nominee Lee So-young for Minister of SMEs and Startups.

▶ Lee Kwang-jae / Democratic Party Lawmaker: She was born in 1985, and while there is criticism regarding Lawmaker Lee Hae-min and Senior Secretary Ha Jung-woo returning, I believe both the presidential office and the government should actively recruit people born in the 1970s and 1980s. Going further to those born in the 1990s and 2000s, I would like to see an initiative to establish AI aide positions across all ministries to demonstrate a firm commitment toward the future.

▷ Joo Young-jin / Anchor: How old were you when you worked at the Blue House alongside President Roh Moo-hyun?

▶ Lee Kwang-jae / Democratic Party Lawmaker: I was 39 years old.

▷ Joo Young-jin / Anchor: 39 years old.

▶ Lee Kwang-jae / Democratic Party Lawmaker: At that time, Minister Rhyu Si-min and Minister Kim Doo-kwan were all in their 40s.

▷ Joo Young-jin / Anchor: Mostly in their early 40s.

▶ Lee Kwang-jae / Democratic Party Lawmaker: Minister Kim Hyun-chong, who led the KORUS FTA—whom I scouted—served as vice minister in his early 40s. While everyone worried at first, we eventually overcame the major hurdle of the KORUS FTA. And former Prime Minister Lee Hae-chan served as prime minister in his early 50s. AI heralds another new era. To match that, we need younger leadership, which is why I have high expectations for Lawmaker Lee So-young.

▷ Joo Young-jin / Anchor: If we get the chance, we should definitely invite Lawmaker Lee So-young for an interview. We do not have much time left, but you are deeply focused on AI, and President Lee Jae-myung and his administration are heavily concentrated on AI as our new growth engine. Everyone knows about AI now. But specifically, how does this reach our daily lives through the budget? The public needs to feel it.

▶ Lee Kwang-jae / Democratic Party Lawmaker: That is correct. In the end, what matters most is citizens who utilize AI best. For example, how will education change? What we advocate is that EBS has 330,000 pieces of data from kindergarten through elementary school. If trained with AI, students can have a homeroom teacher better than AI alone. If we have the world's strongest medical data, an AI primary care physician emerges. In factories, productivity will rise using AI. In the drama 'Manager Kim,' a 2-minute scene was produced as an AI video.

▷ Joo Young-jin / Anchor: SBS 'Manager Kim.'

▶ Lee Kwang-jae / Democratic Party Lawmaker: That is right. In that sense, AI should be utilized when creating cultural webtoons or films. Just as IT was the fundamental technology that changed the world in the past, AI is now the major transformative technology. In my own case, I do not use the most expensive Claude tier, but the $200 plan. By around Wednesday, I often run out of capacity. Many university students have told me, "Please make it easier for us to use more tokens." We must build a country where all citizens, public officials, and enterprises can best utilize AI to generate added value, along with everyday convenience. I am confident that following that path will allow us to become a leading nation following the US and China. To do that, we must deploy all these financial resources.

▷ Joo Young-jin / Anchor: You brought materials, but we are running out of time to explain them in detail. The four major financial resources mobilizing total state assets: 800 trillion won government budget, 1,617 trillion won national pension and public funds, 3,800 trillion won state and public property, and policy financing/private capital. Understood. This has been an interview with Democratic Party Lawmaker Lee Kwang-jae, Chair of the National Assembly Special Committee on Budget and Accounts. Thank you for speaking with us today.

▶ Lee Kwang-jae / Democratic Party Lawmaker: Thank you.

※ For more details, please watch the video.