In March 2022, South Korea elected a new conservative president, Yoon Suk-yeol, who is a political outsider and therefore relies heavily on staff and experts that served under previous administrations. As his Conservative Party lacks a parliamentary majority, President Yoon will face significant challenges in implementing reforms.
Due to a well-performing government, the economic consequences of the COVID-19 crisis were relatively small compared to other countries. So far, the effects of Russia’s invasion of Ukraine on South Korea have been limited, although in the mid-term the economy will be affected by rising global energy prices. With a low share of renewable energy, South Korea remains heavily dependent on imported fossil fuels which makes the economy vulnerable.
President Yoon has adopted a more confrontational stance against North Korea and pledged to strengthen ties with the United States and Japan. With over four years left in office, Yoon’s concrete political agenda remains ambiguous and awaits clarification.
