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07 June 2025

Lee Jae Myung Begins Presidency Amidst Regional Tensions

South Korea’s new leader pledges peace, economic revival, and strategic balance while facing internal divisions and external pressures

On June 4, 2025, Lee Jae-myung was officially sworn in as South Korea's new president, marking a significant political transition amid both internal challenges and regional tensions. Formerly a human rights lawyer and a progressive politician, Lee assumed office with a clear mandate after winning nearly 49.42% of the vote in a highly contested election, which saw a voter turnout of 79.4%, the highest since 1997. His inauguration at the National Assembly was a solemn yet hopeful occasion, signaling the start of a presidency tasked with healing a nation still grappling with the aftermath of martial law declared late last year and escalating economic pressures.

Lee's rise to power comes at a critical juncture. The previous president, Yoon Suk Yeol, was impeached by South Korea's Constitutional Court following his controversial declaration of martial law in December 2024. This political upheaval left deep scars within the country, making Lee's pledge to overcome political divisions and prevent any future "gun-wielding" administrations that threaten the people an urgent priority. He emphasized the collective strength of the South Korean people as the key to navigating these turbulent times.

Economically, Lee faces a daunting landscape. The South Korean economy is contending with a slowdown exacerbated by U.S. trade protectionism measures, which threaten the nation's export-driven markets. Lee promised immediate action to address the soaring cost of living that burdens households and small businesses alike. He also committed to accelerating negotiations with the United States over trade tariffs, underscoring the delicate balance South Korea must maintain between its economic interests and strategic alliances.

In a notable display of civic engagement, South Korea's e-commerce and logistics sectors, including major players like Coupang, CJ Logistics, and Hanjin Logistics, suspended services on June 3 to enable their workforce—largely composed of temporary and freelance delivery workers—to participate in the presidential election. This unprecedented move, the first for Coupang since its 2014 inception, reflects the high stakes of the election and the importance placed on democratic participation. Despite concerns about night shift workers missing rest, the gesture was widely seen as a victory for labor rights advocates, especially since many delivery workers lack comprehensive legal protections.

Turning to security, Lee Jae-myung has charted a nuanced course that seeks to reconcile national defense with social cohesion. His administration's hallmark policy is a "new balance of power" strategy aimed at protecting the country without alienating its citizens. This approach entails a firm stance on accountability, as evidenced by his decision to prosecute those involved in the December 2024 martial law incident to restore faith in the rule of law. Yet, critics caution that such prosecutions risk being perceived as political retribution rather than genuine societal healing.

Lee's North Korea policy marks a departure from his predecessor’s more confrontational tone. At a memorial ceremony for fallen soldiers held on June 6 at Seoul's National Cemetery, Lee notably omitted any mention of North Korea, contrasting sharply with former President Yoon's speeches that condemned Pyongyang's provocations and called for enhanced security. Instead, Lee focused on building a peaceful, democratic, and prosperous nation founded on stable peace, dignity, and pride. On his inauguration day, he reiterated his commitment to opening communication channels with North Korea and pursuing peace through dialogue and cooperation.

However, Lee is clear that any engagement with North Korea must be conditional and reciprocal. He declared, "The era of talks merely for diplomatic photo ops is over," emphasizing that Pyongyang must demonstrate constructive actions such as halting missile tests and establishing diplomatic communication channels before Seoul considers easing sanctions or other measures. His proposal to revive the 2018 inter-Korean military agreement, which had been suspended amid rising tensions after 2022, aims to reduce military skirmishes near the demilitarized zone and maintain steady military-to-military contacts—key steps toward minimizing the risk of accidental conflict.

Despite opening avenues for dialogue, Lee’s government maintains strong ties with traditional allies. He supports continued joint military exercises with the United States under the ROK-US Alliance and seeks to deepen trilateral cooperation with Japan, especially in intelligence sharing, cybersecurity, and countering North Korean threats. Analysts at The Diplomat highlight Lee’s emphasis on South Korea's strategic autonomy, noting his reluctance to relinquish decision-making power to external forces. Yet, he also chooses not to disrupt the foundational security alliances, signaling a pragmatic balance between independence and alliance commitments.

In defense policy, Lee has initiated a shift away from conventional military expenditures toward investment in dual-use technologies like artificial intelligence, drones, and cybersecurity. This approach aims to integrate national defense with domestic industry and economic growth, transforming security into a driver of innovation and employment. His "Basic Society" economic plan similarly focuses on bridging economic disparities, creating jobs in neglected regions, and ensuring future industries are accessible to all societal sectors. By setting ambitious targets such as achieving a KOSPI index of 5,000 points and investing in traditionally conservative regions like Gyeongsang province, Lee strives to communicate inclusivity across political divides.

Yet, not all of Lee’s traditional progressive base is satisfied. Two core issues—transfer of Operational Control (OPCON) from the United Nations Command to South Korean forces and the status of the THAAD missile defense system—remain contentious. OPCON, which would grant South Korea full wartime command authority, has been a long-standing goal for progressives. Although Lee had previously supported this transfer, he has not set a timeline or provided concrete progress updates, citing the need for careful consideration amid rapidly changing security dynamics. Similarly, while progressives had opposed THAAD due to concerns about provoking China and regional stability, Lee has maintained the system’s status quo, framing it as integral to trilateral cooperation with the U.S. and Japan. These positions have sparked disappointment and questions among his supporters about the dilution of his earlier stances.

As South Korea navigates a complex geopolitical landscape marked by renewed regional tensions and domestic political wounds, President Lee Jae-myung’s leadership will be closely watched. His attempt to harmonize security with reconciliation, economic growth with social equity, and strategic autonomy with alliance commitments represents a delicate balancing act. Whether this new approach can truly deliver stability and prosperity without leaving any citizen behind remains the defining challenge of his presidency.