President Lee Jae Myung has called for a fundamental shift in South Korea’s growth strategy, warning that concentrated development has created privileged elites and deepened regional inequality.

Speaking at a town hall event in Daejeon on Friday, Lee said past high-growth policies under Park Chung-hee had both advantages and drawbacks, contributing to economic success but also fostering imbalance.

He emphasized the need to dismantle entrenched privileges and build a fairer economic system where small businesses with potential can thrive, while large businesses that fail can exit the market. 

He pointed to Sejong City’s stalled development as an administrative capital as a symbol of ongoing regional neglect.

Lee also criticized the previous administration for slashing research and development budgets, saying it dealt a heavy blow to science-driven cities like Daejeon.