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South Korea’s new left-wing president, Lee Jae-myeon, has committed to “building a new nation of hope” as he took office on Wednesday after placing importance on election victory.
In Seoul’s first speech, Lee acknowledged that Asia’s fourth-largest economy faces “an intertwined web of crises across diplomacy, national security and democracy.”
He vowed that what he said was an outdated model of economic development, accusing him of promoting inequality and stunting growth.
South Korea’s economy is under pressure from US President Donald Trump’s aggressive trade policy, intensifying competition from Chinese exporters.
Lee has pledged to respond to “nuclear and military provocations” by the country’s heavily armed neighbor, the North Korea.
“We will remain open communication channels with the North through dialogue and cooperation and build peace on the Korean Peninsula,” Lee said. “It’s better to win without fighting than to win through conflict. The most reliable security is peace that makes the fight unnecessary.”
The country is struggling with a long-term political crisis caused by then-President Yun Sook Yeol’s declaration of martial law in December.
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Lee describes his conservative predecessor’s foreign policy towards China and Russia as “unnecessarily hostile.”
Lee is expected to negotiate a tariff contract with the US president while pursuing “practical diplomacy” with Beijing at the point of strengthening US-China competition.
The Bank of Korea reduced its growth forecast for this year from 1.5% to 0.8% last week after the economy signed a small contract in the first quarter amid a sharp slowdown in exports.
Lee’s victory places both the presidency and the Parliament in the hands of left-wing parties after years of divided government.
Korean benchmark Kospi Share Index rose more than 2.4% in morning trading. Investors expect Lee to bring about governance reforms to strengthen the hands of minority shareholders, and loosen the grip of the families that control the country’s largest industrial group.
