South Korea's Lee: To strengthen cooperation with US, Japan

South Korea's Lee: To strengthen cooperation with US, Japan

Lee Jae-myung, the newly elected President of the Republic of Korea (ROK), has expressed his commitment to strengthening ties with the United States and Japan. This comes as South Korea's political landscape shifts following the ouster of former President Yoon Suk Yeol over his botched attempt to impose martial law. Lee Jae-myung's victory, which was supported by a high voter turnout of 79.4%, marks a significant change in the country's leadership [1].

In his inaugural speech, President Lee Jae-myung emphasized the importance of deepening U.S.-Japan-ROK trilateral cooperation. This cooperation is aimed at bolstering regional security, enhancing economic resilience, and defending shared democratic principles [2]. The U.S. and Japan have both congratulated Lee on his election and expressed a desire to foster closer ties. U.S. Secretary of State Marco Rubio noted that the United States and South Korea share an ironclad commitment to the Alliance, grounded in their Mutual Defense Treaty, shared values, and deep economic ties [2].

The new administration's focus on economic resilience is also evident in the market's response. South Korea's benchmark KOSPI index and the tech-heavy Kosdaq index both rose more than 1% at Wednesday's market open, reflecting investor optimism following the election [2]. President Lee Jae-myung has pledged to improve corporate governance to boost corporate valuations and raise the benchmark KOSPI index to 5,000, which is around 80% higher than the current level [2].

The new administration's commitment to strengthening regional cooperation is a significant development for the financial markets. As South Korea continues to modernize its alliance with the United States and Japan, investors can expect to see a more stable and secure regional environment. This could lead to increased investment opportunities and economic growth.

References:
[1] https://www.state.gov/releases/office-of-the-spokesperson/2025/06/election-of-republic-of-korea-president-lee-jae-myung/
[2] https://asia.nikkei.com/Spotlight/South-Korea-election/South-Korea-election-live-Lee-Jae-myung-takes-oath-of-office