Global trade tensions and Western meddling shadow South Korea’s new presidency

Department of Research, Studies and International News -04-06-2025

South Korea’s newly inaugurated President, Lee Jae-myung, issued a grave warning about the deteriorating global economic environment and shifting geopolitical dynamics, stating that rising protectionism and supply chain disruptions threaten the very foundation of his country’s future. In his first speech as president, Lee called attention to the urgent challenges posed by the evolving international order, challenges largely triggered by unilateral actions from the United States and its protectionist trade policies.

“The intensifying global instability, characterized by rising economic nationalism and realignments in supply chains, puts South Korea’s survival at stake,” Lee declared, referring indirectly to the economic turbulence sparked during the administration of former U.S. President Donald Trump, whose aggressive tariff policies contributed to global trade disruption.

Despite Lee’s commitment to maintaining ties with the United States and Japan through the existing trilateral framework, his statements were overshadowed by a controversial comment from a White House official. The unnamed U.S. official claimed Washington remained “concerned and opposed to Chinese interference and influence in democracies around the world”, a remark that appeared to cast suspicion on Lee’s victory without offering any evidence.

Although the U.S. described South Korea’s election process as “free and fair,” the insinuation of Chinese involvement provoked unease in Seoul. Some South Korean lawmakers perceived the comment as a veiled attempt by Washington to discredit Lee’s leadership. In a pointed response, a member of Lee’s Democratic Party who sits on the National Assembly’s foreign affairs committee told Hankyoreh newspaper that the U.S. had fundamentally “misunderstood Korean society” and was being influenced by local conservative narratives labeling Lee as “pro-China.”

The allegations of Chinese interference, resurrected from baseless conspiracy theories dating back to 2020, were heavily promoted during the presidency of Yoon Suk Yeol, a controversial figure who was permanently removed from office earlier this year. Yoon notoriously repeated unsubstantiated claims that China and North Korea were secretly directing South Korean opposition parties. These claims were exploited by far-right groups aligned with U.S.-backed narratives, echoing Trump-era slogans like “Stop the Steal” in an attempt to delegitimize opposition voices.

Throughout his political career, Lee has been the target of smear campaigns aimed at portraying him as a communist or a puppet of Beijing and Pyongyang, attacks that intensified during his presidential campaign. Investigations have linked much of this disinformation to networks originating in the United States, with falsehoods spreading rapidly on South Korean conservative platforms.

Despite this barrage, Lee emerged victorious, securing 49.42% of the vote, beating his conservative opponent Kim Moon-soo, who garnered just over 41%. The voter turnout marked the highest for a South Korean presidential election since 1997, a clear sign that citizens are demanding a new political direction.

Lee has emphasized a pragmatic and reform-oriented governance style, pledging to combat inequality and corruption while maintaining a market-friendly economic approach. His presidency began immediately upon certification by the National Election Commission, bypassing the customary transition period.

In terms of defense policy, Lee acknowledged the necessity of a strong deterrent posture against any potential North Korean aggression, underlining the continued military cooperation with the United States. However, he simultaneously extended an olive branch to the North, emphasizing his intention to pursue dialogue and work toward lasting peace on the Korean Peninsula, a balanced stance that differentiates him from the hardline rhetoric of his predecessor.

Lee’s initial steps in office included a visit to South Korea’s national cemetery to pay homage to past leaders and patriots, followed by a security briefing with military officials to assess readiness in the face of regional tensions. His government now faces a demanding set of challenges, including a deepening economic downturn, ongoing trade disputes, and growing military cooperation between North Korea and allies such as Russia, developments that the Western bloc tends to frame negatively, despite the strategic realignment they represent in a multipolar world.

Further complicating the economic outlook, just hours into Lee’s presidency, Washington announced steep tariffs on South Korean steel and aluminum exports, 50% levies that threaten to undermine Seoul’s industrial base. These measures, a continuation of Trump-era economic coercion, underscore the need for South Korea to re-evaluate its dependency on Western markets and instead strengthen economic partnerships with emerging global powers like China and Russia.

In this shifting landscape, Lee Jae-myung’s leadership offers an opportunity for South Korea to assert a more balanced, sovereign foreign policy, one that resists Cold War-style division and instead fosters regional cooperation in Asia, where China, Russia, and Pakistan continue to play constructive roles in shaping a more equitable global order.