Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
President may need to moderate policy push following local election outcome: analysts
President Lee Jae Myung speaks during a meeting with senior presidential secretaries at Cheong Wa Dae in Seoul, Wednesday. Yonhap
By Yi Whan-woo
President Lee Jae Myung may need to moderate the pace of his policy agenda following the recent local elections to more flexibly reflect public sentiment, as evidenced by voter concerns over housing issues in Seoul, analysts said Friday.
"The Seoul mayoral election result suggests that the government will likely have to proceed more cautiously with its push for real estate regulation, as housing issues were a major factor behind the ruling party's defeat," a political commentator said, asking not to be named.
He went on to say, “The implications could extend beyond housing to other politically sensitive issues that affect people's livelihoods."
He pointed to how Oh Se-hoon, the incumbent Seoul mayor from the main opposition People Power Party (PPP), won reelection after overcoming an early deficit against Democratic Party of Korea (DPK) candidate Chong Won-o.
The DPK contender's loss overshadowed the ruling party's victories in 12 of the 16 races for metropolitan and provincial leadership posts.
The mounting frustration of home owners over the Lee administration’s real estate regulatory drive, including tighter lending rules, higher tax burdens and the revival of heavier capital gains taxes on owners of multiple homes, is believed to have played a role in Oh's win.
Oh built decisive leads in voter-rich districts, including three affluent districts in southern Seoul, ultimately overcoming his deficit against Chong.
Also speaking on condition of anonymity, another political expert said, “The Seoul mayoral race manifested a growing public desire for stronger checks on the government regarding politically sensitive issues, including constitutional reform and prosecution overhaul.”
"The president may have to rethink some of the measures he had planned to push after the local elections, particularly those perceived as hardline,” he said.
Political observers viewed the local election outcomes as increasing the likelihood that the president will move quickly to carry out a personnel reshuffle.
Speculation has been rampant that Lee will conduct a broad reshuffle spanning both the Cabinet and the presidential office.
The prospect for the shift has gained momentum, as Prime Minister Kim Min-seok is likely to resign, setting off a chain of promotions and personnel changes.
Cheong Wa Dae spokesperson Kang Yu-jung on Friday said, “No decisions have been made regarding the prime minister's future or any personnel appointments."
Nevertheless, several potential candidates are being touted as the next prime minister, with particular attention being paid to their ability to communicate effectively not only within the ruling party, the Cabinet and Cheong Wa Dae, but also with opposition parties.
Among them are Presidential Chief of Staff Kang Hoon-sik and Justice Minister Jung Sung-ho.
Kang has been one of the president's closest aides since the start of the administration in June 2025.
He is regarded as combining political judgment with strong execution skills, making him capable of spearheading the administration's strategic initiatives.
Chung is also one of Lee’s close aides, with a deep understanding of the president's governing philosophy, as well as the ability to coordinate ministries and foster bipartisan cooperation.
He is known for leading the government's prosecution reform efforts, which has been a key policy priority for the president.