When Lee Jae-myung won South Korea’s presidency in early 2025, he inherited more than just the keys to the Blue House—he took on a nation in flux. The political chaos left by his predecessor, growing fears over North Korea, and a faltering economy have combined to create one of the most difficult starting points for any Korean leader in recent memory.
Lee’s campaign focused on progressive reform, economic justice, and a return to democratic norms. Now, just weeks into his administration, he’s finding that promises made during a campaign can quickly collide with the realities of governing in turbulent times.
Post-Yoon Cleanup: A Government Under Reconstruction
Former President Yoon Suk-yeol’s controversial tenure ended dramatically after he was removed from office following accusations of undermining democratic institutions. His brief declaration of martial law during anti-corruption protests left an institutional vacuum and bruised national morale.
Lee has responded with a strong reform agenda. His government has promised full investigations into political abuses, the demilitarization of internal security forces, and new checks on executive authority. Transparency in appointments, reformation of the National Intelligence Service, and public audits of state-owned corporations are among his first initiatives.
Still, many South Koreans remain skeptical. After years of political scandals from both sides of the aisle, Lee must prove that this time, change is real.
Economic Pressure Points
South Korea’s economy is under intense strain. Once known for its rapid growth and high-tech exports, the country is now facing sluggish GDP growth (hovering around 1.5%), a youth unemployment crisis, and record household debt. These economic pressures have been worsened by global inflation and reduced demand for semiconductors, which make up a major portion of Korea’s exports.
Lee’s economic strategy focuses on structural reform and redistribution. His headline policy—a universal basic income (UBI) of 1 million won per adult annually—is aimed at increasing household spending and reducing inequality. He also plans to expand social housing, raise taxes on real estate speculation, and pour investment into artificial intelligence and green technology sectors.
Critics argue that these programs will burden the national budget. But Lee believes bold intervention is necessary to avoid long-term economic stagnation. “This is not just stimulus,” he stated during a press briefing. “It is a redesign of the economic contract between government and citizen.”
North Korea: Engagement or Confrontation?
North Korea remains one of Lee’s most delicate challenges. The past year has seen Kim Jong-un ramp up missile testing, tighten internal control, and deepen cooperation with Russia and China. With talks stalled and sanctions showing little effect, Lee must navigate a path between diplomacy and deterrence.
Unlike his predecessor, who took a hardline stance, Lee favors conditional engagement. He supports reopening joint economic zones and offering humanitarian aid, provided Pyongyang agrees to dialogue. He also wants to revive the inter-Korean peace process suspended since 2019.
But critics worry Lee may be too optimistic. “Engagement cannot come without accountability,” warned a former national security advisor. Nonetheless, Lee insists that dialogue, backed by defense readiness and international coordination, offers the best long-term solution.
The U.S. Relationship: Alliance at a Crossroads
Though Lee has reaffirmed the U.S.–Korea alliance, the relationship remains strained in some areas. During Donald Trump’s presidency, South Korea faced erratic policies, including military cost-sharing demands and tariffs on Korean steel and tech goods. Even under Biden, trade tensions have not fully eased.
Lee has said he welcomes cooperation with any U.S. administration, including a possible return of Trump, but he is also pushing for more autonomy. He wants a greater Korean role in regional diplomacy and seeks to reduce dependency on U.S. markets by expanding trade ties with Southeast Asia and the EU.
The delicate balancing act between economic nationalism and global integration will be a key test of his foreign policy leadership.
A Nation Watching Closely
Lee Jae-myung begins his presidency with hope from supporters and hesitation from skeptics. He has the legislative majority needed to pass reforms, but public support can shift quickly if results don’t follow. With inflation pressures, geopolitical instability, and a volatile real estate market, Lee’s honeymoon period may be shorter than most.
Still, his leadership marks a significant departure from the crisis-driven politics of the past few years. If he can deliver even modest success across the economy, diplomacy, and governance, Lee may set a new standard for progressive leadership in Asia’s fourth-largest economy.
