Lee Jae Myung’s micro approach to markets shows gains and limits

 

Song Ho-keun
 
The author is a columnist of the JoongAng Ilbo, a chair professor and director of Doheon Academy, Hallym University.
 
 
 
Markets are not easy opponents for any government. They are volatile and unpredictable, often described as having “two faces” — one of an angel and one of a devil. Mishandling them can trigger destructive consequences, eroding wealth and jobs. Few administrations decisively win in their contest with the market, though a general pattern holds: Progressives tend to tighten control while conservatives loosen it.
 

President Lee Jae Myung presides over a Cabinet meeting at the presidential office in Yongsan, Seoul, on July 29, 2025, early in his term. The meeting was broadcast live on KTV. He has since continued to hold Cabinet meetings and state briefings live and has actively communicated through social media. [YONHAP]

 
Having a president who understands the nature of markets can shape a nation’s fortunes. Even then, knowledge does not guarantee success. Lee Myung-bak, despite his business background, underestimated market forces and paid a heavy price early in his presidency during the U.S. beef import controversy. Moon Jae-in, meanwhile, wielded what he saw as the “sword of justice,” but failed to recognize how policies on minimum wages, nonregular workers and working hours provoked market backlash that weakened the economy during his term.
 
President Lee Jae Myung appears to take a different approach. He avoids directly confronting market forces and instead focuses on smaller, everyday economic issues that affect consumers. His governing style centers on what might be called “wallet economics” or “kitchen-table economics,” addressing practical concerns rather than pursuing grand theories of growth or structural reform.
 
This approach has produced unusual moments. Topics such as hair loss treatment and sanitary pad prices have appeared in presidential meetings, even at year-end meetings to address major national issues. When oil prices surged, Lee proposed limiting free subway rides for older people — an idea that was not implemented but signaled his focus on consumer concerns. His 26-trillion-won supplementary budget followed a similar pattern. As global tensions disrupted energy supplies and stranded Korean tankers near the Strait of Hormuz, the government responded with fuel subsidies and price caps. Consumers found some relief, though businesses faced mounting losses.
 

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Lee’s approach may seem small in scale, but it is precise. Rather than sweeping overhauls, he favors targeted adjustments — akin to repairing defects or replacing parts rather than rebuilding systems. During the Moon administration, former Land Minister Kim Hyun-mee introduced repeated measures to stabilize the housing market, only to see prices surge. This time, Lee personally intervened, focusing on three measures: requiring homeowners to live in their properties, regulating multi-home landlords and strengthening property taxes. Housing prices fell significantly, even as rental instability persisted.
 
This governing method has been described as “jumma style.” In Korean usage, ajumma refers to middle-aged women, often associated with practical, frugal and detail-oriented approaches to daily life. The term is used here metaphorically to describe a governing style that emphasizes careful calculation, thrift and attention to everyday concerns. Journalist Kim Yoon-deok of the Chosun Ilbo described it as a kind of “jumma strategy.” After years of grand political rhetoric, many voters have responded to this approach, which addresses practical concerns in a direct and unpretentious manner.
 
The appeal also reflects fatigue with political practices in which governments claimed credit for achievements while ordinary people bore the costs. Policies intended to protect nonregular workers, for example, have sometimes been criticized for entrenching precarious employment among younger workers. Compared to past presidents, often perceived as detached and overly rhetorical, Lee’s approach has resonated with voters seeking tangible results.
 

President Lee Jae Myung, right, listens to a site briefing by Jung Gu-yong, CEO of Uiwang Inland Container Depot, during a meeting with the freight transport and logistics industry on measures to cope with high oil prices at the Uiwang ICD in Gyeonggi on April 8. [NEWS1]

 
Despite broader economic difficulties outside key sectors such as semiconductors, shipbuilding and defense, Lee’s approval rating has reached 67 percent, the highest on record. Ahead of local elections, the ruling Democratic Party leads with 48 percent support, compared to 20 percent for the People Power Party. The opposition, still struggling to recover from internal turmoil, has been unable to present a compelling alternative, and many of its candidates are seen as representing an older political style.
 
The conservative camp has been in disarray for the past year, focusing on internal issues without fully regaining public trust. As a result, it has struggled to prepare for upcoming elections. Even in traditional strongholds such as Daegu and Busan, where conservatives have typically dominated, signs of vulnerability have emerged. Lee’s targeted approach appears to be gaining traction even in these regions.
 
Yet questions remain about how long this “jumma style” can remain effective. In some respects, it resembles the administrative style of local governments rather than that of a national leadership office. Over the past year, there have been a few significant structural reforms that could shape the country’s long-term trajectory. In areas such as health care, labor, education and welfare, policy responses have remained limited or incremental.
 
While the focus on everyday concerns has delivered short-term political gains, it may come at the cost of neglecting deeper structural challenges. The risk is that, amid attention to minor issues, the broader foundations of the economy and governance could weaken.


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.