Economic Overview - South Korea's economy reported a "negative growth" with a 0.2% contraction in real GDP for Q1 2023, attributed to low domestic demand and weak exports [1][4] - The national income growth has also stagnated, raising concerns about the sustainability of fiscal policies and economic continuity [1][3] Government Response - Newly elected President Lee Jae-myung announced the formation of an "Emergency Economic Inspection Task Force" to address the economic challenges [3] - Lee emphasized the need for a supplementary budget of at least 30 trillion KRW (approximately 1.587 billion RMB) to stimulate the economy, focusing on cash subsidies for citizens [3][5] Economic Challenges - The economic situation is exacerbated by external factors such as escalating global trade tensions due to U.S. tariffs, which pose a significant threat to South Korea's export-dependent economy [4][6] - The Bank of Korea has revised its economic growth forecast for 2023 down from 1.5% to 0.8%, indicating a severe economic outlook [4] Fiscal Policy and Debt Concerns - The proposed supplementary budget is expected to be funded primarily through the issuance of deficit bonds, which may increase national debt currently at 1,280.8 trillion KRW (48.4% of GDP) [7] - There are concerns among academics regarding the long-term sustainability of these fiscal measures and their potential structural impact on national finances [7][8] Investment in Technology - President Lee has committed to enhancing South Korea's competitiveness in artificial intelligence (AI) and semiconductor industries, with a planned investment of 100 trillion KRW to secure a leading position in AI [5] - The government aims to develop a large language model and promote cultural exports such as K-POP and television dramas [5] Market Reaction - Following the election and the announcement of economic measures, the Seoul Composite Index rose by 2.66%, reaching its highest level since August of the previous year, reflecting positive market sentiment towards Lee's economic governance [7]