Where is South Korea heading under the new president?
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Polls have opened in South Korea for a snap election to select a new president. The vote was triggered after the Constitutional Court upheld the impeachment of former President Yusuke Yul in April. Former liberal opposition leader Lee Jae-myung won the contest with 49% of the vote, well ahead of his nearest challengers, 41%. South Korea has ramped up one of its most consequential presidential elections in recent history.

With the highest voter turnout in nearly three decades, it's a powerful signal that the public is deeply engaged and perhaps deeply divided about the direction of the country.

With President Lee Jae-myung's warning and already making headlines in his first days in office, the world is watching closely. What kind of leadership will he bring? Can he deliver on promises to tackle the cost of living and economic reform? And how will he position South Korea on the shifting global stage, especially in relation to China and the United States?

In this episode, Li Zhengzhu, a reporter and The Korea Herald, unpacks what the new administration might tell us about the future. It's Friday, June the 6th.

Hi, Zhangzhu. Welcome to the show. It's reported that the final voter turnout for Tuesday's presidential election reached 79.4%, the highest in 28 years. What does the extraordinary participation tell us about the mood of the nation? Are we seeing hope, frustration, or a desire for change?

I think it's all three, actually. A week before the elections, me and a few of my colleagues went out to interview some voters in South Korea, from those aged 18 years old to the oldest voters, those who are in their 80s. And while a few expressed their hopes for bigger changes and a better society, there were also those who were just...

quite exhausted by politics. But overall, the general atmosphere in Korea has been centered around the hope for a better future, for better ties with our diplomatic partners like the United States and for a better economy. So even if voters have different political opinions to each other, I think this hope of wanting a better future for the country was the same.

So people are just voting to make a difference in the country. What have been President Li's top priorities so far? And why are these early decisions being closely watched?

Social unity has been one of President Lee's key priorities. South Korea's society is heavily divided and it was already quite fueled that way from a while back, even before martial law, because of differing views on politics, gender divide, and also because the economy just hasn't been performing very well.

And as a society that's heavily driven by hatred, can only go so far in terms of development, all attention has been on Lee to see how he can work to make amends to such wounds. Lee has also vowed to become a president for all, who puts an end to politics of division. So we'll see how that goes as well. Other than that, Lee is also facing issues that he must deal with in the economy, as the Korean economy hasn't been doing well ever since the martial law, tobacco,

Lee said in his inauguration speech that his top priority will be in restoring people's livelihoods and revitalizing the economy. So with the word growth and economy being mentioned in this speech, I think 22 times and 12 times respectively. He also promised that he would immediately

launched an emergency economic review task force with a resolve to battle the recession head on. So how South Korea's economy will fight itself from here is also worth looking into. A lot of commitments. And from the everyday citizen's perspective, what are the most pressing hopes or expectations from the new administration, like stability, reform, or a stronger economy? What's the national mood like on the street?

Martial law, though, is very short-lived. It has brought extreme political, social and economic instability to this country. We've really been living in an age of uncertainty for almost six months and people have definitely not been very happy. I mean, I guess you can never say a country is 100% stable, but you'll always have some sort of conflict somewhere. And I think generally people are hoping for some more peace and stability in their lives.

peace and stability. And President Li has pledged to prioritize cost of living issues, especially for middle and low income families and small businesses. Let's take a closer look at that. First, what's his stance on the long dominant table conglomerates, which many argue have stifled innovation and competition?

President Lee has expressed a commitment to reforming South Korea's economic model, which has long been dominated by conglomerates, like you said. He's been talking about what he calls the Korea discount, which is a term referring to the undervaluation of South Korean companies due to concerns about corporate governance and transparency. So he's proposed legislative measures to curb abuses by controlling shareholders and companies

enhancing corporate governance, including potential amendments to the Commercial Act to protect minority shareholders' interests. And are there specific policies aimed at helping small businesses to regain their footing? Yes. President Lee's focus has been on financial support and regulatory relief in recognition of challenges faced by small businesses. Back when he was the mayor of the city called Seongnam, he also focused on this issue

I guess reviving small businesses economies at the time as well. Some of the proposed measures include debt adjustment and relief programs, loan repayment burden alleviation, and the establishment of specialized banks to support vulnerable groups. Additionally, the government is also working on legislation to provide customized financial services for underprivileged entrepreneurs aiming to bridge this financial gap and promote sustainable growth.

Yeah, so it's expected that there will be more room for small businesses to grow. But on the other hand, youth unemployment has been a longstanding challenge. How does President Lee plan to create meaningful job opportunities for young South Koreans?

President Lee has outlined a multifaceted approach to create meaningful job opportunities for young South Koreans. His policies include the introduction of a universal basic income and basic loans specifically for youth, provision of one-time employment benefits to those voluntarily employed,

resigning to seek better opportunities and reforms in the housing market to assist low-income youth in purchasing homes. Furthermore, Lee advocates for a reduction in the standard workweek from the 40 hours to 36 hours without wage cuts, and he's trying to aim to improve work-life balance and potentially open up more employment opportunities.

And the new president has also committed to fostering growth in future-oriented sectors like artificial intelligence and green tech. What kinds of policies or investments are we expecting to see in this space?

And how might they help shift South Korea's economic engine? A cornerstone of Lee's technological agenda is the establishment of 100 trillion won into what he calls an AI fund. And this initiative seeks to position South Korea among the top three global leaders in AI by enhancing AI infrastructure, supporting research and development, or R&D as people also call it, fostering talent development and promoting digital literacy nationwide.

The fund is also expected to bolster the development of next-generation semiconductors and facilitate the creation of innovation zones and data centers. In alignment with global sustainability goals, President Lee has pledged to phase out coal-fired power plants by 2040 and invest heavily in renewable energy sources, including solar and offshore wind projects.

Regions such as Jeju and South Cheongna Province are earmarked to become renewable energy hubs, driving both environmental benefits and economic growth.

Basically, the new president's focus on green technology and AI. It represents a strategic shift from South Korea's traditional reliance on heavy industries and conglomerates. And by investing in these future-oriented sectors, the administration seems like it's aiming to stimulate innovation and competitiveness and also create high-quality employment opportunities while also enhancing energy security and environmental sustainability.

So more economic drivers expected within the country. But at the same time, the global trade environment is growing more unpredictable, especially with U.S. tariff policies. What specific trade challenges is South Korea facing? And has President Lee indicated how he plans to protect or adapt to the nation's export-driven economy?

So under the Trump administration, the United States has intensified protectionist policies directly impacting South Korean exports. This includes these increased tariffs, as the U.S. has imposed a 25 percent tariff on South Korean automobiles and a 10 percent blanket duty on various other products, as well as tariffs on steel and aluminum imports.

And so these measures have contributed to approximately around 8% decline in the South Korea's exports to both the US and China, which are two of its largest markets. So President Lee has characterized these developments as a crisis of survival for South Korea, and he has emphasized the urgency of addressing the nation's economic vulnerabilities and to mitigate these challenges.

Lee has also first said that he will engage in diplomatic discussions with the U.S. to negotiate trade terms. And though this call hasn't happened yet, he does plan to initiate a phone call with Trump soon and perhaps more details such as trade negotiations and strategic negotiations regarding, I guess, military defense will also follow after. Other than engaging in talks with the U.S.,

President Lee has also introduced measures to support households and businesses to bolster the economy, as well as exploring opportunities to diversify Korea's trade relationships by strengthening ties with ASEAN and engaging with emerging markets. And President Lee Jae-myung said he would improve South Korea's ties with China, which grew tense under the previous administration. What signs are there that President Lee will chart a different course?

So during this campaign, President Li emphasized the importance of repairing strained ties with China many times, acknowledging its role as South Korea's largest trading partner. He has advocated for a pragmatic diplomacy that balances national interests without fully aligning with any single power bloc, which in this case would be China's.

And in his inaugural address, President Lee reiterated his commitment to pragmatic diplomacy. And he stated that his government would build relationships based on national interest and practicality. He also emphasized that while the alliance with the U.S. remains foundational, there is no need to intentionally exclude or be hostile towards China. And while Lee's approach marks a departure from the previous administration's policies, which was very, I guess,

It would try to shadow China out from its shadows. And it's definitely not free from challenges as well, even though it's very different. As balancing relations between the U.S. and China, it requires careful navigation to avoid alienating either of the two parties. Nonetheless, Lee's emphasis on proclamatory diplomacy and national interests, it suggests

concerted effort to position South Korea as a proactive and I guess balanced player in regional and global affairs. There will be challenges and let's see what a better, warmer South Korea-China relation will bring us. Yeah, can't wait to see that. Okay, thank you very much for joining us, Jangju. Thank you for having me.

As President Lee begins his term, his leadership will be tested on multiple fronts, from easing everyday burdens at home to navigating complex dynamics abroad. But with high public expectations and strong commitments from the new president, one thing is clear: South Koreans are ready for change. We'll be watching as the story unfolds.

And that brings us to the end of this episode of Deep Dive. If you enjoyed it, don't forget to follow us on your podcast platforms. Just search for Deep Dive. You can also leave a comment to let us know what you want to learn about China and beyond. This episode is brought to you by me, Dou Hongyu, and my colleagues Zhang Zhang and Qi Zhi. Special thanks to the Korea Herald reporter Li Zhangzhu. We'll see you in the next one.