South Korea’s President Lee Jae-myung Holds First Cabinet Meeting

South Korea’s newly sworn-in President, Lee Jae-myung, held his first cabinet meeting on Thursday, unveiling urgent economic relief measures aimed at jumpstarting sluggish growth and supporting struggling households—top priorities from his campaign agenda.

Lee officially assumed office on Wednesday, following a swift victory in a snap election triggered by widespread public outrage over a short-lived martial law imposed by his predecessor, Yoon Suk Yeol. Yoon’s controversial attempt to retain power led to his impeachment and removal, shaking confidence in Asia’s fourth-largest economy.

During the cabinet session—comprised of interim officials from the caretaker government formed after Yoon’s ousting—President Lee stressed the need for swift and decisive action to address mounting economic hardships.

Thus far, Lee has appointed only one key official: Kim Min-seok, a veteran lawmaker and close confidant, as nominee for prime minister. As he scrambles to assemble a full cabinet and reestablish his administration, Lee has prioritized stability and continuity in governance.

He described his initial moments in the presidential office as “surreal,” noting the absence of essential tools like computers, printers, and even pens. “It felt as quiet as a graveyard,” Lee remarked. Most of the staff had been reassigned, though his spokesperson confirmed ongoing efforts to restore the office to full functionality.

Economic revival remains the cornerstone of Lee’s agenda. He has committed to a 30 trillion won (approximately $22 billion) fiscal stimulus package to spur growth. The Bank of Korea recently slashed its growth forecast to 0.8%, down sharply from its February estimate of 1.5%.

Speaking to journalists, Prime Minister nominee Kim Min-seok likened the current economic downturn to the 1997 Asian financial crisis, suggesting it could be even more severe due to unfavorable global conditions. “The economy is stagnant and declining. I believe this crisis may be worse,” Kim warned.

The previous administration struggled to counteract the effects of stiff U.S. tariffs that battered key export industries such as automobiles, electronics, and steel. President Lee now faces a steep uphill battle—not only to repair economic damage but also to heal political divisions left by the failed martial law episode and to navigate intensifying global protectionism, particularly from the United States.

Additionally, President Lee has annulled the appointments of two Constitutional Court judges selected by acting President Han Duck-soo, stating that Han, as an unelected interim leader, lacked the authority to make such nominations.

Meanwhile, the National Assembly—led by the Democratic Party—passed special counsel legislation to investigate former President Yoon for insurrection and his wife, Kim Keon Hee, over corruption allegations. Earlier attempts were repeatedly vetoed by Yoon and acting President Han, but with Yoon now facing trial for insurrection, the newly passed bills are expected to proceed.