South Korean Won Appreciates 0.3% as Lee Jae-myung Wins Presidency

Lee Jae-myung, the candidate from the Democratic Party, has won the South Korean presidential election, securing 49.42% of the votes. His victory marks the end of a prolonged period of political uncertainty in the country. Following the holiday on Tuesday, the South Korean market resumed trading, with the dollar/won exchange rate falling by 0.3% to 1375.30. This appreciation of the won reflects the market's positive response to the election results, which have eliminated political uncertainty and shifted focus to Lee Jae-myung's policies and initiatives.

In his victory speech, Lee Jae-myung pledged to swiftly address the political turmoil and economic challenges facing the country. He emphasized the importance of stabilizing the Korean Peninsula and engaging in dialogue with North Korea to achieve mutual prosperity. Lee also called for national unity, urging citizens to bridge their differences and work together towards a common goal. His presidency comes at a critical juncture for South Korea, following the political turmoil and economic challenges that have plagued the country since Yoon Suk-yeol's impeachment in December.

Lee Jae-myung's policy platform is centered around reducing economic inequality and promoting social welfare. He has pledged to increase government investment in AI research and development, starting from 2025, and to support local businesses through vouchers. Additionally, he aims to enhance South Korea's soft power by bolstering its content industry, including K-pop and television dramas. In his foreign policy, Lee Jae-myung has emphasized a pragmatic approach, stressing the importance of the South Korea-U.S. alliance while also valuing the relationship with China. He has pledged to engage in constructive dialogue with North Korea, aiming to achieve denuclearization and maintain regional stability. Lee's approach to foreign policy is seen as more balanced compared to his conservative counterparts, who have advocated for a stronger emphasis on the South Korea-U.S. alliance and a more confrontational stance towards North Korea.

Lee Jae-myung's term began at 6:21 AM local time, with the inauguration ceremony scheduled for 11 AM at the National Assembly. The new president faces the daunting task of rebuilding the nation's economy, which has been severely impacted by the unpredictable protectionist policies of the Trump administration in the United States. The election results were officially confirmed by the Central Election Commission, with Kim Eun-jae from the People Power Party receiving 41.15% of the votes, and Lee Jun-seok from the Reform New Party garnering 8.34%. The market's positive response to Lee Jae-myung's victory is evident in the appreciation of the won and the rise in the Kospi index, which had risen by 20% from its April low and was poised to enter a bull market. The new president's policies and initiatives will be closely watched by investors and analysts as he navigates the challenges facing South Korea.