Published on: June 4, 2025 10:32 am
Lee Jae-myung’s Historic Win and South Korea’s New Political Landscape
After years of political turmoil, South Korea’s newly elected President Lee Jae-myung secured victory with over 49% of the national vote. His win marks a shift toward progressive leadership after conservative President Yoon Suk Yeol was ousted.
The public’s support for Lee underscores a national desire for political reform, justice, and a stronger social safety net. His party now holds a legislative majority, giving Lee a solid foundation for transformative governance.
- Lee Jae-myung’s Historic Win
- South Korea’s Economy Under Pressure
- Trump’s Trade Policy
- Kim Jong-un and Diplomacy
- Foreign Policy with China and Japan
South Korea’s Economy Under Pressure
Why the Economy Is Slumping
The South Korean economy is currently facing significant challenges:
- GDP growth forecasts have dipped below 1%
- Manufacturing exports are slowing
- Inflation and unemployment are increasing
Lee’s $21 Billion Recovery Plan
To counter the slump, Lee has proposed a ₩28 trillion (approx. $21 billion) supplementary budget. This plan includes:
- Subsidies for low-income families
- Support for small businesses
- Welfare programs for senior citizens
Economic reform and recovery remain at the center of his policy agenda.
Navigating Trump’s Trade Policy and Rising U.S. Tariffs
Lee’s government must also manage trade friction with the U.S., particularly with former President Donald Trump resuming a strong protectionist stance. American tariffs on Korean goods threaten exports and industrial stability.
Lee aims to renegotiate trade terms and safeguard South Korean economic interests while preserving the U.S.-ROK security alliance.
Lee’s Approach to North Korea and Kim Jong-un
A Return to Engagement
Unlike his predecessor, Lee supports a dialogue-first approach with North Korean leader Kim Jong-un. His foreign policy includes:
- Step-by-step denuclearization talks
- Conditional sanctions relief
- Restoration of inter-Korean economic zones
Diplomacy Over Isolation
Lee’s policy marks a return to the “Sunshine Policy” spirit, which emphasises diplomacy over confrontation. However, he remains firm on reimposing sanctions if North Korea breaks agreements.
Foreign Policy Beyond the Peninsula
South Korea’s new president also aims to mend strained relations with:
- Japan, through a two-track approach to trade and historical disputes
- China, balancing economic ties while safeguarding national security
Lee plans to reposition South Korea as a regional peacemaker and economic hub, navigating between major powers without compromising sovereignty.
What’s Next for South Korea?
President Lee Jae-myung’s leadership begins amid rising regional tension and domestic uncertainty. Yet, his progressive vision, economic stimulus plan, and diplomatic pragmatism offer South Korea a chance to regain its footing.
If implemented effectively, Lee’s agenda could reshape Northeast Asia’s political and economic future — and restore public trust in South Korean governance.