Cheong Wa Dae clarifies Lee's 'excess profits' remark was not aimed at specific firms

President Lee Jae Myung said Wednesday that "a portion of excess profits" should be distributed to ordinary citizens and that "new mechanisms such as a basic income grant" are needed.

The remarks came in an interview with British magazine The Economist marking the first anniversary of Lee's inauguration.

Cheong Wa Dae moved quickly to clarify, saying the comment "was not a reference to any specific company or matter." It added that Lee was speaking to "a generational challenge that may one day need to be confronted to sustain and maintain the capitalist market order amid the great AI transition."

The clarification signaled that Lee was not calling for the redistribution of excess profits from specific sectors such as semiconductors, but was reiterating his existing position that surplus tax revenue should be deployed efficiently. On June 8, Lee said he would invest surplus tax revenue in future growth potential and stepped back from the question of redistributing excess profits, saying the issue required caution and that acting prematurely "could mean trampling on new shoots."

In the same Economist interview, Lee said North Korea would be even less likely to give up its nuclear weapons following the war with Iran.

On agreements reached between the South Korean and US presidents — including the construction of nuclear-powered submarines — Lee said any enrichment and reprocessing capabilities would be used only for the low-level enrichment needed to operate reactors. He drew a clear line on South Korea acquiring nuclear weapons, calling it neither "desirable nor realistic."

On the situation created by North Korea's deepening ties with Russia and its "two hostile states" posture, Lee said US President Donald Trump's "unique character could be very helpful," The Economist reported. The magazine also said Lee indicated he could meet North Korean leader Kim Jong-un if denuclearization were removed from the agenda.

On domestic politics, Lee was quoted as saying South Korea "can move beyond this normalization of the abnormal" — a reference to the previous government's declaration of emergency martial law and the impeachment of former President Yoon Suk Yeol — and can "develop into a nation that leads the world."

The Economist also noted Lee's legal exposure, writing that he "took office carrying five trials related to his time as a mayor and governor" and that Lee "says the investigations and indictments were politically motivated."

The magazine further noted that more than half of South Korea's presidents since democratization have been impeached or imprisoned, and said Lee acknowledged the odds of falling victim to that same cycle himself were "pretty high."