President Lee Jae-myung instructed his cabinet on Friday, at a meeting reviewing the first year of his administration, to ensure that "decarbonization policy does not become an obstacle to industrial development and the attraction of regional businesses." His remarks called for a pragmatic approach, warning against fixating solely on the environmental goal of carbon reduction in ways that burden industrial competitiveness and balanced regional development. Turning to Climate, Energy and Environment Minister Kim Sung-hwan, Lee made a pointed joke, asking, "Aren't you clashing with other ministries (over energy issues)?"
At the Cabinet meeting, which was also held as an emergency economic review meeting at Cheong Wa Dae the same day, Lee was briefed on each ministry's performance over the past year and stressed, "We must create bigger and more substantial changes in people's lives." As ministries reported on policy achievements and future tasks, Lee repeatedly emphasized "real-world applicability" and "tangible effects on the public."
Lee particularly addressed the balance between expanding renewable energy and maintaining industrial competitiveness during the Climate and Energy Ministry's briefing. Minister Kim said, "We have established a national target to reduce greenhouse gas emissions by 53% to a maximum of 61% by 2035 and submitted it to the United Nations," presenting the emissions reduction goal. He then reported on key tasks including the parallel pursuit of new nuclear power plant construction and renewable energy expansion. In response, Lee said, "Values are important, but care must be taken not to burden industrial and balanced development opportunities," adding, "Since it is difficult to avoid fossil fuel dependence for a certain period, please strike a good balance."
Kim explained, "The key depends on how quickly we can lower the price of renewable energy," noting that "solar power unit costs have fallen to around 30 won in Saudi Arabia and 50 won in the United States." He added, "It is important to expand solar power while lowering prices and ensuring that income returns to local residents." After noting that gas power generation costs around 140 to 150 won, he said, "Making renewable energy cheaper than gas is an important task." Referring to the Renewable Portfolio Standard (RPS) bill that passed the National Assembly the previous day, he also said, "Through methods such as contract bidding, we can lower renewable energy prices at a fairly rapid pace."
As Kim repeatedly emphasized decarbonization policy, Lee asked, "Aren't there quite a few cases where energy security and climate environment issues clash at the climate ministry?" adding, "Don't your left and right brains collide?" When Kim replied, "Not at all," Lee responded again, "If your left and right brains don't collide, then aren't you colliding with other ministries?" The remarks were interpreted as urging the climate ministry to focus on a "pragmatic energy transition" rather than a "speed war," even within the broader decarbonization policy framework.
Energy was also a major issue in the discussion on responses to the Middle East war held just before the performance briefing. Industry Minister Kim Jung-kwan reported that "we have secured crude oil at 85% of the level compared to previous years through July," but Lee asked about subsequent conditions and called for additional measures.
"What happens after July?" Lee asked. "We need to have a plan for after August in preparation for the worst-case scenario." His remarks reflected the intent to prepare medium- to long-term emergency response systems, rather than settling for short-term supply stability, given the possibility of a prolonged Middle East war and variables such as the Strait of Hormuz. After Kim reported that during a meeting between Korea's Industry Ministry and Japan's Ministry of Economy, Trade and Industry the previous day, the Japanese side had expressed envy of Korean policies such as the introduction of a price cap system and the diversification of supply sources beyond the Middle East, Lee encouraged him, saying, "Do you know what the difference is? Japan doesn't have Kim Jung-kwan. You did well. We need to prepare with more vigilance."
Lee also raised the issue of securing crude oil supply lines, saying, "We need to send a special envoy once again." After looking at Presidential Chief of Staff Kang Hoon-sik, who had previously visited the Middle East as a special envoy for strategic economic cooperation, Lee turned his head and said, "How about the prime minister going this time?" drawing laughter from the meeting room.
Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon drew attention by announcing that the launch of "AI for All," a Korean independent artificial intelligence service that all citizens can use for free, is scheduled for the end of this year. When Lee asked, "Will all citizens be able to use it for free just by entering their ID?" Bae replied, "We are preparing for a target of November to December in the second half," and reported, "We plan to allow all citizens to use AI services for free."
AI will also be introduced into the crisis response system for small business owners. The Ministry of SMEs and Startups plans to analyze warning signs based on bank delinquency information, policy fund usage records, Korea Credit Guarantee Fund data, and Financial Services Commission materials, while building a more sophisticated analytical system by linking with National Tax Service sales data in the future. Minister Han Seong-sook explained, "The scale is too large to handle by human hands, so we have introduced AI technology as a primary measure," adding, "There is also significant room for further advancement." In response, Lee said, "There are millions of target companies, so how can humans handle this? Rather, using AI seems necessary to ensure objectivity and fairness."
A proposal was also made to actively incorporate AI into the budget planning, deliberation, and settlement analysis work of the Ministry of Planning and Budget. When Bae explained, "We are preparing a dedicated organization to develop an AI assistant for the government together with the Ministry of the Interior and Safety," Lee repeatedly urged, "This has been done by human hands until now, so we must quickly apply AI to the parts where it can be utilized."
