Lee Jae-myung inaugurated as South Korea’s new president, vows unity and economic revival

South Korea’s new President Lee Jae-myung pledged to “build a new country of hope” as he was sworn into office at the National Assembly on Wednesday, following his victory in the elections.

Lee, from the Democratic Party (DP), addressed the South Korean people in his inaugural speech in Seoul, saying, “Regardless of whom you supported in this election, I will be a president who embraces everyone and serves all citizens.”

Before the ceremony, Lee Jae-myung visited the Seoul National Cemetery to pay tribute to Korean soldiers who died in wars.

Lee, who officially began his five-year term, acknowledged that Asia’s fourth-largest economy faces an “intertwined network of crises in diplomacy, national security, and democracy.”

He promised to fundamentally change the outdated economic development model, which he blamed for fueling inequality and hindering growth. He said he would address the urgent economic problems facing the country by focusing on cost-of-living issues affecting middle- and low-income families and the struggles of small business owners.

He emphasized that they would revive growth by adopting a pragmatic and market-oriented approach to the economy and strengthen advanced technologies.

South Korea’s economy is under pressure due to Donald Trump’s aggressive trade policies and intense competition from Chinese exporters. It is also approaching the July deadline set by the White House for negotiations on import tariffs, which Washington cites as the cause of the large trade imbalance between the two countries.

Message of dialogue with North Korea

In foreign policy, Lee Jae-myung reiterated his pre-election promise to communicate with North Korea, saying, “We will keep communication channels open with the North and achieve peace on the Korean peninsula through dialogue and cooperation.”

“It is better to win without fighting than to win through conflict, and the most reliable security is peace that makes war unnecessary,” he added. However, he also pledged to respond to possible “nuclear and military provocations.”

Lee reaffirmed South Korea’s commitment to its alliance with the US, stating they would enhance trilateral cooperation involving Japan and pursue a practical and national interest-based approach in relations with neighboring countries. Lee described his conservative predecessor’s foreign policy towards China and Russia as “unnecessarily hostile.”

White House concerned

Lee is expected to pursue “pragmatic diplomacy” with Beijing while negotiating an agreement on tariffs with the US president, at a time of intensified competition between the US and China.

US Senator Marco Rubio congratulated Lee on his election victory and said the two countries “share an unwavering commitment to an alliance based on a mutual defense treaty, shared values, and deep economic ties.” He also stated that the two countries are “modernizing the alliance to meet the demands of today’s strategic environment and address new economic challenges.”

The White House stated that Lee’s election was “free and fair” but that the US is concerned about and opposes China’s interference and influence in democracies worldwide.

Early election

The country is navigating a prolonged political crisis triggered in December by then-President Yoon Suk Yeol’s brief declaration of martial law. An early election was called after Yoon was impeached by a court decision.

The National Election Commission announced this morning, following its meeting, that Lee won yesterday’s presidential election. According to official results, Lee won 49.42% of the votes, while Kim Moon-soo, the candidate of the ruling People Power Party (PPP), received 41.15%. Voter turnout reached 79.4%, the highest level in 20 years.

Lee’s victory has shifted both the presidency and control of the National Assembly from conservatives to liberal parties after several years of divided government.

The Bank of Korea last week lowered its growth forecast for this year from 1.5% to 0.8%, following a slight contraction in the economy in the first quarter due to a sharp slowdown in exports. South Korea’s benchmark Kospi stock index rose over 2.4% in morning trading. Investors anticipate that Lee will introduce governance reforms to increase the power of minority shareholders and reduce the influence of families controlling the country’s largest industrial groups.

From mayor to president

Lee, a 61-year-old former human rights lawyer, described Tuesday’s election as a “judgment day” against Yoon’s martial law and the People Power Party’s failure to stop this unfortunate move.

Lee began his political career in 2010 when he was elected Mayor of Seongnam, where he gained attention for his social welfare projects. He served as Governor of Gyeonggi Province from 2018 to 2021 and was noted for his effective measures against the COVID-19 pandemic. He narrowly lost the 2022 presidential election to Yoon Suk Yeol.

In 2024, he survived an assassination attempt and, in the same year, played an active role in the resistance against Yoon’s declaration of martial law.

Lee has also faced past accusations of making false statements during his election campaign, and legal proceedings on this matter are ongoing. However, according to the South Korean constitution, a sitting president cannot be prosecuted, so the cases have been postponed.

Lee Jae-myung’s presidency could herald significant changes for South Korea in both domestic and foreign policy.