Han Dong-hoon Unveils Vision: Aiming for AI G3, $40K Income, and 70% Middle Class 🚀

Han Dong-hoon, a former leader of the People Power Party and a presidential hopeful, has presented a bold vision for South Korea’s future, focusing on bolstering the middle class through strategic investment in artificial intelligence (AI).

Key Pillars of the Vision: ‘3·4·7’

• AI G3: Position South Korea among the top three global leaders in AI.
• $40,000 National Income: Increase the average national income to $40,000.
• 70% Middle Class: Expand the middle class to encompass 70% of the population.

Strategic Investments in AI

To achieve AI G3 status, Han proposes investing ₩200 trillion (approximately $150 billion USD) in AI infrastructure over five years. This includes creating a ‘Ministry of Future Strategy’ to cultivate 10,000 ‘AI warriors’—specialized professionals in the field.

Tax Reforms to Benefit Families

Han also plans to increase the basic deduction for dependents from ₩1.5 million to ₩2 million. Child deductions would also increase, with higher amounts for the second and third children. He aims to shift inheritance taxes to an inheritance acquisition tax, potentially exempting spouses entirely and reducing the tax burden on lower-value assets.

Revamping Welfare with ‘Lifetime Welfare Accounts’

A ‘Lifetime Welfare Account’ is proposed to channel AI investment profits back to citizens, incorporating personal care service accounts for tailored support in childcare, education, and elder care. A Deputy Prime Minister-level ‘Social Security Department’ would oversee these structural changes.

Tackling Inflation and Energy Costs

Han emphasizes controlling inflation, particularly energy costs. He suggests investing over ₩100 trillion by 2038 in energy infrastructure, financed by the Electricity Power Industry Basis Fund and reduced energy subsidies.

Supporting Agriculture

To support farmers, Han aims to ease regulations on farmland sales, protect the property rights of elderly farmers, and promote smart farming practices.

Focus on the Middle Class

Han stated that his approach is pragmatic and innovative, aiming to resolve issues and restore and strengthen the middle class, expanding into economic security, social values, and innovative economics. He believes that a larger middle class will broaden the political center, helping overcome political crises.

Commitment to Growth

When questioned about the lack of tax increases in his vision, Han stressed that growth is paramount. He believes that tax measures and AI investments will drive growth, covering any necessary expenditures. He also emphasized the importance of reducing income taxes for hardworking individuals.

Additional Comments

Han critiqued the government’s proposed supplementary budget of ₩12 trillion, including ₩1.8 trillion for AI investment, deeming it insufficient. He also expressed support for increasing housing supply and relaxing regulations on redevelopment and reconstruction to stabilize housing prices.

Han Dong-hoon’s vision aims to revitalize South Korea’s economy by prioritizing AI investment, supporting the middle class, and fostering sustainable growth.