South Korean President Lee Implements Bold Fiscal Policy Amid Economic Recovery

South Korean President Lee Jae Myung, elected in a June 3 snap election, has prioritized economic recovery and restoring public trust after a national crisis triggered by the previous administration’s martial law declaration. Lee pledged to implement a bold, expansionary fiscal policy, proposing an additional $14.7 billion in government spending to stimulate weak domestic demand, with his Democratic Party-controlled parliament expected to vote on the budget soon. He emphasized the necessity of a proactive government role in national finance to address the challenges facing Asia's fourth-largest economy. In foreign policy, Lee reaffirmed the alliance with the United States as fundamental while pursuing pragmatic diplomacy with China, Russia, and North Korea, advocating for continued dialogue despite tensions. Lee is also engaged in difficult trade negotiations with the U.S. to avoid the impact of threatened punitive tariffs from President Donald Trump, which could affect South Korea’s key semiconductor, automobile, and steel industries. The outcome of these talks remains uncertain as the July 8 deadline for reciprocal import duties approaches.