South Korea Shifts Focus to Economic Policy Ahead of Presidential Election Amid Political Turmoil

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Asia

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Image Source: Lee Jin-man/AP

As South Koreans emerge from a tumultuous six months marked by political upheaval, the focus has shifted to economic policy in the lead-up to the presidential election scheduled for June 3. The political landscape has been dominated by the impeachment of former President Yoon Suk Yeol, whose controversial declaration of martial law in December triggered the country’s most significant political crisis in decades.

The impeachment of Yoon, upheld by the constitutional court last month, has cast a long shadow over the election campaign. Yoon's administration faced criticism for its handling of various issues, including low economic growth, an aging population, one of the world’s lowest birth rates, and the repercussions of Donald Trump’s tariff wars.

In the wake of Yoon's impeachment, the ruling conservative People Power Party (PPP) has struggled to present a united front. After a chaotic selection process, the party announced that former labor minister Kim Moon-soo would be its candidate. He will face off against Lee Jae-myung, the liberal Democratic Party candidate, who currently leads in the polls.

Lee, who narrowly lost to Yoon in the 2022 election, expressed gratitude to his supporters for their continued backing. “I promise to repay their support with victory,” he declared at a rally in Seoul. Meanwhile, Kim aims to distance himself from Yoon’s controversial legacy and focus on pressing economic issues, including record-high youth unemployment and a housing crisis.

“I genuinely believe I must become a president for the people, a president for livelihoods, a president for the economy,” Kim stated after launching his campaign at a market in the capital. He has pledged to create a more business-friendly environment and increase housing support for young people and newly married couples.

However, Lee is currently facing criminal charges that could threaten his candidacy, including allegations of bribery linked to a $1 billion property development scandal. Despite these challenges, courts have postponed further hearings until after the election, allowing him to continue campaigning.

The PPP's internal strife has raised concerns among its supporters, with many expressing dismay at the party's disorganization. “The PPP is just a mess. They are self-destructing,” said Lee Jung-ja, a 52-year-old voter. “Even if they unite, it still won’t be enough. All they’re doing is fighting with each other.”

If elected, Kim has vowed to demand an immediate summit with Donald Trump to negotiate tariffs and adopt a hardline stance against North Korea. He aims to foster private investment and improve housing support for young families.

In a dramatic turn, Lee has been campaigning in a bulletproof vest following threats against his life, including a stabbing incident during a press conference in January 2024. He has emphasized the need for security in a society that he describes as increasingly fractured.

Lee's campaign focuses on boosting economic growth through artificial intelligence and promoting the Korean cultural wave, which has become a significant driver of exports and tourism. He has also promised tax incentives to encourage higher birth rates among couples and has expressed a desire to restart dialogue with North Korea, despite the regime's nuclear ambitions.

The Korea Herald editorialized that Yoon’s impeachment has left little room for substantive debate and urged South Koreans to resist partisan reflexes. The newspaper emphasized that the next president will inherit not only a fractured government but also the responsibility to restore institutional trust, stabilize the economy, and navigate an increasingly volatile global landscape. The challenges ahead for South Korea are formidable, and the upcoming election will be pivotal in shaping the nation’s future.