# South Korean domestic policy and regional development

> Live situation record from CLSTR: https://clstr.news/situations/south-korean-domestic-policy-and-regional-development
> Updated: 2026-09-20T05:18:00.000Z. Sources: 8. Developments: 3.

President Lee Jae-myung has outlined several domestic policy priorities focused on addressing structural national crises in South Korea.

In response to regional extinction caused by population concentration in the Seoul metropolitan area, the administration pledged to expand the authority and financial support of local governments. The President introduced a ‘Regional Preference Index’ to assist areas distant from Seoul and emphasized integrated investments in education, transportation, culture, and tourism to foster balanced national growth. During his seventh press conference, Lee expanded on this by proposing the decentralization of corporations, finances, and public institutions. In Gyeongsangnam-do, this has led to interest in relocating 40 agencies, including KOTRA and KIAT. However, coordination efforts face challenges due to a vacancy in the Chairperson position of the Presidential Committee on Local Era.

Addressing the challenges of the younger generation, the President emphasized the state’s responsibility to expand economic opportunities. At the ‘Youth Budget Unboxing 2027’ event, Lee noted that in a low-growth society, failure is often perceived as a ‘shortcut to the abyss’ rather than a stepping stone, causing intense anxiety regarding debt and stability. He urged public officials to move away from supplier-centered thinking toward ‘best-selling policies’ that are consumer-centric. 

Additionally, Lee has addressed constitutional and judicial reforms. He proposed incorporating the spirit of the Busan-Masan Democratic Uprising and the May 18 Gwangju Democratization Movement into the constitutional preamble. Regarding prosecution reform, Lee has faced scrutiny from both critics and supporters over his perceived moderate stance on whether prosecutors should retain certain investigative powers in exceptional cases.

## Timeline

### 2026-09-20: President Lee Jae-myung outlines regional development and reform plans

President Lee Jae-myung addressed regional development, proposing the relocation of public institutions to provinces and constitutional updates, while facing scrutiny over his prosecution reform stance.

4 sources. https://clstr.news/cluster/president-lee-jae-myung-outlines-regional-development-and-reform-plans

### 2026-08-28: President Lee pledges state responsibility to expand opportunities for youth

President Lee Jae-myung emphasized the state's responsibility to provide economic opportunities for youth, urging officials to create effective, demand-driven policies during a budget briefing.

4 sources. https://clstr.news/cluster/president-lee-pledges-state-responsibility-to-expand-opportunities-for-youth

### 2026-08-27: President Lee pledges expanded local authority to combat regional extinction

President Lee Jae-myung met with local government heads to discuss combating regional extinction by expanding local authority, financial support, and targeted investments in non-metropolitan areas.

2 sources. https://clstr.news/cluster/president-lee-pledges-expanded-local-authority-to-combat-regional-extinction

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Cite as: South Korean domestic policy and regional development. CLSTR, https://clstr.news/situations/south-korean-domestic-policy-and-regional-development