President Lee Jae-myung said economic polarisation is exerting a large influence on conflict between groups, and set out the case for what he called inclusive growth. The emphasis fell on the distribution of growth rather than the growth rate itself.

According to the presidential office, Mr Lee said that as gaps in income and assets widen, divisions between generations, regions and classes are increasingly translated into political language. The implication is that economic policy cannot be separated from social cohesion policy.

From a debate on growth rates to one on distribution

The government has so far leaned on a growth strategy built around investment in artificial intelligence, semiconductors and other advanced industries. The remarks are read as keeping that strategy while also designing where its proceeds flow.

Inclusive growth is, however, a term long used by international bodies and many governments, and its content varies greatly with the instruments chosen. Whether the weight falls on fiscal spending, taxation or labour-market institutions is the question.

For Chinese households in Korea

Many Chinese households in Korea are concentrated in self-employment and small manufacturing and services, and are therefore directly exposed to how distribution policy is designed. Support for small traders and measures on rent and energy costs are the practical points of interest.

The next thing to watch is when and in what order the government brings forward follow-up measures. Should they overlap with the budget review calendar, the scope of the discussion may widen.