South Korea’s Newly Elected President Lee Jae-myung Vows to Revive Crumbling Democracy and Economy
Seoul, June 4, 2025
South Korea's newly elected President Lee Jae-myung took office on Wednesday, pledging to rescue the nation from what he described as a "nearly collapsed" democracy and a struggling economy. Winning 49.42% of the vote in the recent special election, Lee secured a major victory for the liberal camp.
Promises to Restore Democracy and Tackle Economic Crisis
Lee declared that his government would be “pragmatic and market-oriented.” He promised to ease regulations to improve the business climate and to initiate renewed dialogue with North Korea. At the same time, he reaffirmed his commitment to maintaining a strong alliance with the United States.
Voting and Election Context
The election was held following former President Yoon Suk-yeol’s failed attempt to declare martial law, a move that left the nation deeply divided. The White House described the election as “free and fair.”
Economic Plans and International Trade
One of Lee’s key challenges is reviving South Korea’s economy, which has suffered under U.S. protectionist policies—especially tariffs imposed during the Trump administration that negatively impacted the country’s auto and steel industries. Analysts in Washington noted, “Time is short for Lee. Reaching a deal with Trump is his top priority.”
Positive Market Reaction
Following Lee’s victory, the KOSPI index surged by more than 2%, reaching a 10-month high. Investment notably increased in the renewable energy and financial sectors.
Diplomacy with China and Japan
Lee stated he seeks peaceful relations with China and has no intention of escalating the Taiwan issue. However, he will maintain the relationship with Japan established under Yoon’s leadership and continue the strong alliance with the United States.
