South Korea Joins Global Shift Toward State-Led Industrial Policy

Governments in the United States, China and other nations are reviving the role of the state as an active shareholder and industrial driver. In the United States, industrial policy tools such as subsidies and strategic regulation are being reconsidered, while Beijing continues to expand state‑owned enterprises under the oversight of the State‑owned Assets Supervision and Administration Commission (SASAC). This broader "shareholder state" trend marks a reversal of three decades of privatization and market‑oriented reforms.

In South Korea, President Lee Jae Myung’s administration has launched a new industrial policy aimed at semiconductors, artificial‑intelligence infrastructure, robotics and other frontier sectors. The strategy draws on the country’s historic Heavy‑and‑Chemical Industry drive of the 1970s and seeks to address coordination failures, learning externalities and supply‑chain security concerns. The government plans to use targeted credit, tax incentives and public finance to stimulate private investment and restore competitive advantage.

Both developments illustrate a renewed belief that state capital and strategic direction are essential for long‑term economic growth and technological leadership.