Keizai Koho Center (KKC) continues to implement activities to strengthen the Japanese business community’s external communications. As part of these efforts, KKC recently hosted a dialogue with Ms. Michelle Ye Hee Lee, Bureau Chief for Japan and Korea at The Washington Post. The event welcomed 39 participants, primarily professionals engaged in public relations and international information dissemination. Ms. Lee provided insights into the South Korean presidential election and the evolving dynamics of Japan-South Korea relations under the new administration, followed by a lively exchange of views with the attendees.

Economic Situation in South Korea

Ms. Lee outlined the recent political upheaval in South Korea, noting that President Yoon Suk-yeol declared martial law in December 2024—the first state of emergency since democratization in 1987. He was subsequently impeached and removed from office by the Constitutional Court. A presidential election was held on June 3, 2025, resulting in the historic victory of Lee Jae-myung from the Democratic Party of Korea, the main opposition party, who secured the highest voting percentage in the country’s history.

During the interim period, South Korea operated under a provisional presidential system. The absence of a national leader led to administrative stagnation, contributing to declines in personal consumption, investment, and exports, and ultimately slowing economic growth. Expectations are now high for the implementation of the bold economic policies President Lee pledged during his campaign.

Foreign Policy Under the New Administration: Japan-South Korea Relations and Japan-U.S.-South Korea Relations

On June 17, Prime Minister Shigeru Ishiba and President Lee Jae-myung held a summit meeting on the sidelines of the G7 Summit in Canada. President Lee emphasized the importance of bilateral cooperation and expressed his desire to build a future-oriented relationship with Japan. His remarks signaled a more conciliatory stance toward Japan compared to previous progressive administrations. Ms. Lee noted her interest in observing how President Lee navigates foreign policy.

Meanwhile, the Trump administration is ushering in a period of significant transformation in U.S. foreign policy, with potential implications for Japan-South Korea relations and broader trilateral relations. This stands in contrast to the historic agreement reached under the Biden administration, which was driven by shared security concerns regarding China and North Korea. Ms. Lee concluded that a geopolitical paradigm shift is clearly underway, underscoring the need for close monitoring of political and economic developments in East Asia.