Whenever there is a presidential change, the impact of a new government on that country is globally significant and consequential.
On April 4, South Korea’s President Yoon Suk Yeol was removed from office for declaring martial law. Since then, the presidency was literally a ping pong game of acting presidents ranging from the education minister, finance minister to the former South Korean ambassador to the US.
All the political turmoil has led up to a snap election on June 3rd. The new president will take over immediately. Mr. Yoon is barred from running.
The consequences of the election are enormous as the political turmoil has had a significant impact on the economy and public sentiment. Industrial production and retail sales have had monthly declines and a clean energy policy that was the envy of the world has lost focus. Under President Yoon, innovation was put on hold and bureaucratic inertia was on the uprise. In short, South Korea’s credibility as a premier country for business is being questioned.
On the global stage, the balancing act between continuing trade with South Korea’s largest trading partner, China, and continuing trade with the US, which is South Korea’s second largest partner, but has a mercurial trade policy is a significant challenge. The nation’s security concern with North Korea’s recent saber rattling creates even more challenges for the nation of 52 million.
The new president has an opportunity, and a challenge, to steer the country towards shoring up the economy, merging disparate political philosophies, and advancing global relations. A big ask, but the consequences of failure are enormous.
About the author
Gary Sumihiro is the founder of Sumihiro Investments, LLC a global strategic consulting firm. Learn more at www.sumihiroinvestmentsllc.com.