Economic Crisis Declared: President Lee’s Emergency Measures

President Lee Jae-myung, upon taking office, declared an “economic crisis” and initiated emergency measures. In his first cabinet meeting, he ordered the preparation of a 30 trillion won supplementary budget to stimulate the economy(경제) and stabilize livelihoods. The Bank of Korea has downgraded the economic growth forecast to 0.8%, with President Lee comparing the situation to the 1997 financial crisis. His administration plans to implement fiscal expansion and structural reform to support small businesses and low-income households.

Plunging Exports: Korea’s Challenge Amid US-China Trade Tensions

South Korea’s exports are plummeting due to high US tariffs and rising global protectionism. Major industries like semiconductors and steel have been heavily impacted, leading to a 0.2% contraction in GDP during the first quarter. President Lee is trying to buy time in trade negotiations with the US while pursuing diversification strategies, including potential CPTPP membership. He is also working to maintain balanced diplomatic relations with China amidst growing geopolitical complexities.

Navigating Political Chaos: Lee’s Diplomatic Strategy for a New Era

President Lee Jae-myung took office amid political turmoil following the impeachment of former President Yoon Suk-yeol and his attempted martial law declaration. Lee emphasizes the restoration of democracy and national unity while seeking stronger cooperation with the US and Japan and improved relations with North Korea. However, rising tensions from North Korea-Russia military ties and US-China competition present significant diplomatic challenges. President Lee is committed to navigating this complex terrain through pragmatic diplomacy.