Tough tasks ahead on trade, security as Lee set to mark 100 days in office
President Lee Jae Myung poses for a photo after receiving letters of appointment from selected individuals during the "People's Mandate Ceremony" held at Gwanghwamun Square in downtown Seoul, Aug. 15. Yonhap
With President Lee Jae Myung set to mark 100 days in office, he has built a reputation over his pragmatic approach to state affairs and diplomacy, but such a reputation is facing a challenge amid shifts in the global trade order and tensions with North Korea.
Lee was sworn in on June 4 after an election triggered by the ouster of former President Yoon Suk Yeol over his failed martial law bid in December, with the urgent task of restoring political stability and achieving national unity.
Although U.S. President Donald Trump had threatened to impose 25 percent "reciprocal" tariffs on South Korean goods, a last-minute deal reduced the U.S. tariffs to 15 percent in exchange for a $350 billion investment pledge and other commitments.
While the final agreement is still under negotiation, experts say Seoul averted the worst-case scenario by securing tariff levels comparable to Japan and the European Union, while resisting U.S. pressure to further open its agricultural market.
Lee's first summit with Trump in late August set a positive tone for the South Korea-U.S. alliance, but areas of contention still remain, including Washington's move to readjust the role of American troops in South Korea, analysts said.
His prior stop in Tokyo for talks with Prime Minister Shigeru Ishiba signaled his commitment to enhancing the bilateral ties and the trilateral cooperation with Washington.
Ishiba recently decided to resign over an election setback, but Lee's office has said South Korea expects to keep positive relations with Japan.
President Lee Jae Myung, left, and U.S. President Donald Trump smile during their talks in the Oval Office of the White House in Washington, D.C., on Aug. 25. Yonhap
On both trips, Lee stressed his foreign policy priorities: bolstering the U.S. alliance, and strengthening ties with Japan amid North Korea's evolving nuclear program and its deepening military ties with Russia.
Yet challenges lie ahead under the Trump administration's protectionist "America First" agenda.
Tariff talks are not finalized, leaving the 25 percent tariffs on Korean autos in place, while Japan secured 15 percent duties after signing a formal agreement last week.
Washington is also pressing Seoul to boost defense spending and grant greater "strategic flexibility" for the 28,500 U.S. troops in Korea, amid its regional strategy to counter an increasingly assertive China.
Relations were further tested by the detention of more than 300 South Korean workers in Georgia last week during a U.S. immigration raid at the construction site of an electric vehicle battery plant run by Hyundai Motor and LG Energy Solution.
The crackdown sparked public anger at home, forcing Korean firms to reassess risks and the broader political climate for doing business in the United States.
On North Korea, Lee has pursued a conciliatory approach, halting cross-border loudspeaker broadcasts and vowing not to pursue "unification by absorption."
At his summit with Trump, he proposed resuming dialogue with North Korean leader Kim Jong-un, offering to act as a "pacemaker," while encouraging Trump to play the role of "peacemaker."
Prospects, however, remain bleak amid Pyongyang's closer alignment with Beijing and Moscow.
Kim joined Chinese President Xi Jinping and Russian President Vladimir Putin at a vast military parade in Beijing last week to mark 80 years since the country's victory over Japan in World War II, the first such gathering in 66 years.
The show of diplomatic unity underscored shifting geopolitics, complicating Lee's efforts to ease inter-Korean tensions while managing Seoul's ties with China amid an intensifying U.S.-China rivalry.
Further uncertainty looms in Japan amid an impending leadership change, with the ruling Liberal Democratic Party set to choose Ishiba's successor next month.
At home, Lee's government has pressed ahead with a sweeping reform agenda, backed by the ruling Democratic Party (DP), which commands a majority in the 300-seat National Assembly.
Special counsel probes into Yoon's martial law plot, allegations involving former first lady Kim Keon Hee and the 2023 death of a Marine have advanced rapidly.
In July, Yoon was arrested on insurrection charges, followed a month later by his wife's detention on stock manipulation, election meddling and bribery charges -- making them the first former presidential couple to be jailed simultaneously.
High on the agenda is prosecutorial reform, which would dismantle the prosecution's central headquarters and replace it with separate agencies for investigation and indictment.
If passed as part of government reorganization bills in parliament, it would mark the first such overhaul in 77 years. With his approval ratings above 50 percent and strong DP backing, Lee is well-positioned to push the changes through.
On the economy, Lee has acted quickly under his expansionary fiscal policy.
In July, the government introduced a universal cash handout to spur consumption, fulfilling Lee's key campaign pledge.
He has promised to foster a business-friendly environment and drive the Korea Composite Stock Price Index toward 5,000 points, though pro-labor legislation has drawn mixed responses from the market.
Lee's government has approved revisions to the Commercial Act to expand shareholder rights and the so-called "yellow envelope law," which boosts subcontractor bargaining power, despite concerns raised by the business community.