Winning a tense election that capped off months of political turmoil, new South Korean President Lee Jae-myung described his victory as the start of the country’s return to normalcy following the crisis sparked by then-conservative leader Yoon Suk Yeol’s imposition of martial law in December.But the outspoken liberal, who assumed office immediately on Wednesday without a transition period, takes the helm during a highly challenging time for the country, which has struggled mightily to revive a faltering economy battered by months of political paralysis and compounded by U.S. President Donald Trump’s tariff hikes.Lee also inherits from Yoon the escalating threat of North Korea’s nuclear ambitions, now further complicated by Pyongyang’s deepening alignment with Moscow over Russian President Vladimir Putin’s war on Ukraine.
Although a U.S. federal court recently ruled that Trump lacks authority to impose his planned tariffs, the White House has appealed, leaving the outcome uncertain. Trump has also pushed for product-specific tariffs on key sectors like autos and semiconductors, which make up a major share of South Korean exports. Trump could also seek a broader deal requiring Seoul to pay significantly more for the 28,000 U.S. troops stationed in South Korea to deter North Korean threats.While Seoul’s previous government had aimed to reach a “package” deal with Trump by early July, Lee has preached patience on tariffs, saying it would be against national interests to obsess with an early agreement.
