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Lee urges 'bold and transformative' innovation to improve manufacturing industry

Published: 16 Apr. 2026, 12:47

President Lee Jae Myung, far right, speaks during a meeting between senior presidential secretaries at the Blue House in central Seoul on April 16. [JOINT PRESS CORPS]

President Lee Jae Myung called for bold innovations in manufacturing and structural reforms Thursday to address changes in the geopolitical landscape brought about by the Iran war.

Lee made the remarks during a meeting with senior aides as the United States' war against Iran entered its seventh week, sending energy prices soaring, disrupting global supply chains and dealing a blow to a Korean economy that heavily relies on trade and manufacturing.

"The global trade order is at a critical turning point amid the decline of free trade and intensifying geopolitical risks," he said. "For a country like ours with a heavy reliance on manufacturing, we must undertake bold and transformative innovation with the nation's future at stake."

Lee instructed the government to protect advanced technologies and talent and to create demand for innovative products through public-sector initiatives as well as to accelerate preparations for a sovereign fund.

"We should innovate regional manufacturing capabilities, establish an artificial intelligence-based manufacturing ecosystem and set up a Korean-style sovereign wealth fund," he said.

The government announced plans to launch a sovereign wealth fund for long-term investment in strategic industries in the first half of this year, benchmarking similar funds in Singapore and Australia.

Lee also called for efforts to secure additional crude oil and raw materials to stabilize supply chains.

On Wednesday, the presidential chief of staff, Kang Hoon-sik, said Korea had secured 273 million barrels of crude oil and 2.1 million tons of naphtha by the end of this year through agreements reached during visits to Oman, Saudi Arabia, Qatar and Kazakhstan.

While the war in the Middle East has posed challenges to industrial restructuring and supply chain diversification, Lee said it has also provided an opportunity to reflect on the nation's diplomatic standing and role.

"The Republic of Korea has now risen to the ranks of a leading nation that is drawing global attention," he said, referring to Korea by its official name. "It bears the rightful responsibility to not overlook universal values, such as world peace, adherence to international norms and the protection of human rights."

During Tuesday's Cabinet meeting, Lee also urged the parties involved in the Iran war to take courageous steps toward peace, warning that a fragile cease-fire between the United States and Iran remains at risk and threatens the global economy.

Yonhap