South Korea’s Lead Presidential Candidate Eyes Trade, Pragmatism

The National Assembly building, top right, at dusk in Seoul. Photographer: SeongJoon Cho/Bloomberg Photo by SeongJoon Cho /Bloomberg

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(Bloomberg) — The frontrunner in South Korea’s presidential race, Lee Jae-myung, aims to prioritize trade talks with the US and the compilation of another extra budget to shore up Asia’s fourth-largest economy if he wins the June 3 election. 

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The former chair of the main opposition Democratic Party has also pledged to enhance corporate governance standards and curb malpractices such as stock manipulation as part of efforts to boost the allure of the country’s $1.6 trillion stock market. 

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While Lee was often compared to Bernie Sanders for his ideals of pursuing better wealth distribution and enhanced labor rights, his most recent comments suggest that he’s broadly taking a more pragmatic approach to policy as he gears up to fill a looming leadership vacuum. 

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The election of the next leader will be a crucial step in putting the export powerhouse back on track, after former President Yoon Suk Yeol’s short-lived martial law decree in December triggered the country’s worst political crisis in decades. Political uncertainty after his impeachment and ultimate ouster hampered the government’s response to US President Donald Trump’s tariff campaign, exacerbating angst in an economy increasingly strained by the trade war. 

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Energy transition is also a key element of his initiative to revive regional economies hit in part by the world’s lowest fertility rate, as well as his push to relocate the presidential office and parliament away from Seoul. 

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Trade and Tariffs

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During a televised debate with his party rivals on Wednesday, Lee singled out trade negotiations with the US as the most pressing task to tackle in his first 100 days in office, explaining that his team is already making preparations so that he can swiftly get involved and resolve the issue. 

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The Democratic Party has warned the negotiators, led by ministers appointed by Yoon, against making a “hasty” compromise with the Trump administration. Lee has called for creating a special parliamentary committee to handle the issue. 

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Foreign Policy

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Lee has said he will champion what he describes as “pragmatic diplomacy,” signaling his willingness to depart from previous liberal presidents who were accused of risking the US alliance in order to thaw frosty ties with North Korea, and of stoking anti-Japan sentiment for political gains at home. 

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His government would pursue practical foreign policy based on national interests, prioritizing building a sound relationship with the Trump administration and fostering solid partnerships with like-minded countries like Japan, a campaign adviser told Bloomberg on condition of anonymity due to the sensitivity of the matter. 

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There’s a need to better manage relationships with China and Russia which have sunk to their lowest in decades, he said, adding that it was a similar situation with North Korea. Lee aims to maintain deterrence while also exploring the possibility of resuming dialogue.