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The Australia-Korea Business Council in collaboration with Dr Tony Michell from Korea Associates Business Consultancy Ltd, delivered a highly successful webinar earlier this week on the results of Korea's General Election.
Overview
- On April 10, South Korea held its 22nd general election.
- The main opposition Democratic Party (DP) emerged victorious, winning a majority of the 300 seats in the National Assembly, with 175 seats
- The ruling People Power Party's (PPP) won 108 seats.
- The overall voter turnout was 67 percent, which was the highest record in 32 years.
- These mid-term elections are largely seen as an opportunity to gauge citizens’ level of approval of President Yoon Suk Yeol.
- From a legislative point of view, President Yoon is a lame duck.
- A number of issues contributed to this election outcome including:
- The insistence that from 2025 an increase of 2000 new medical students must be recruited to meet the needs of 2035
- The appointment of former chief of staff as Ambassador to Australia when he was under investigation for suppressing information about the death of a marine
- Denial of wrong doing over his wife's acceptance of luxury bag
FDI policy expected to continue
- The government aims to attract global companies to establish a business-friendly support system to reach Korea's USD 35 billion foreign investment target.
Foreign Affairs
- The president has few restrictions on his power over foreign affairs (Pundit consensus)
- The opposition has not fully bought into his pivot to the US and Japan.
- Cannot be taken for granted that Korea will join AUKUS
- Structure of the possible China-Japan-Korea Summit in May to be watched
- Arguments about US industrial policy have shown Korea at a disadvantage especially on EV credits and semiconductors and on restricting investment and trade in China policy.
Views towards North Korea
- Both sides to step back from a 2018 military agreement North Korea signed with South Korean President Yoon Suk-yeol's predecessor, Moon Jae-in
- Active opposition by DP and allies could reverse the current dismantling of the Ministry of Unification and at least tempt the North away from dependency on Russia
Energy
- The Democratic Party of Korea and the Rebuilding Korea Party advocate the expansion of renewable energy, where as the current government supports the expansion of coal and nuclear power
- Democratic Party pledged 'Renewable Energy 3540' to increase the proportion of renewable energy generation to 40% by 2035. The plan is to open the era of RE100 (100% renewable energy) by switching to eco-friendly renewable energy.
