“I will become a president for all who embrace and serve the people”: President Lee Jae-myung

SEOUL: President Lee Jae-myung takes oath of office, Declares unified government and pragmatic government, Immediately launches emergency economic response task force

President Lee Jae-myung, who took office as the 21st President of the Republic of Korea, announced, “I will become a president for all who embrace and serve the people.”

President Lee, who officially began his term when the National Election Commission issued the certificate of election at 7:11 am on the 4th, visited the Seoul National Cemetery in Dongjak-gu, Seoul, and then moved to the National Assembly in Yeouido to take the oath of office.

After taking the oath of office, President Lee said in his address to the people, “From today, as the 21st President of the Republic of Korea, I take my first step toward a truly democratic republic, the Republic of Korea,” and “I stand here with an infinite sense of responsibility and infinite gratitude.”

He continued, “The future is beckoning us. It is time to revive the people’s livelihoods that have been driven to the brink, restore growth, and create a tomorrow where everyone is happy,” and emphasized, “It is time to rebuild security and peace that have been reduced to political strife, the people’s livelihood and economy that have collapsed due to indifference, incompetence, and irresponsibility, and Manchurianism that has been destroyed by armored vehicles and automatic rifles.”

President Lee said, “I promise to the people. I will respond to the stern order to bloom hope on deep and great wounds and their earnest wish to create a completely new country,” and pledged, “I will become a president for all who embrace and serve all the people, in accordance with the president’s other meaning of great unity.”

He continued, “The Democratic Party government, Lee Jae-myung’s government that is now inaugurated, will be a just unified government and a flexible and practical government,” and “I will become a president who ends the politics of division. I will overcome the crisis using national unity as the driving force.”

In particular, the president said, “I will start by restoring the people’s livelihood and reviving the economy,” and “I will immediately activate the emergency economic response task force with the determination to fight a recession. I will revive the virtuous cycle of the economy by using the national budget as a starting point.”

He also said, “Let’s send the old ideology to the museum of history. From now on, there will be no issues of progress. There will be no issues of conservatism. There will only be issues of the people and the Republic of Korea,” and repeatedly emphasized, “If both Park Chung-hee’s and Kim Dae-jung’s policies are necessary and useful, we will use them without distinction. The Lee Jae-myung government will be a pragmatic market-oriented government.”

In doing so, the president promised to create a country where the people are the masters, a country that grows and develops vigorously again, a country where everyone lives well together, a country where culture flourishes, and a safe and peaceful country.

The president stated, “As a faithful servant of the sovereign of the Republic of Korea and as an agent entrusted with the lives of 52 million citizens and the future of the country, I will faithfully fulfill the responsibilities given to me as the 21st President of the Republic of Korea.”

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Kospi breaks 2,770 in post-election 'honeymoon rally'

Korean shares surged Wednesday as President Lee Jae-myung officially took office, with investor sentiment buoyed by expectations of stimulus under the new administration as well as gains in U.S. markets overnight.

The benchmark Kospi jumped 2.66 percent to close at 2,770.84, breaking the 2,770 mark to reach a new yearly high. The tech-heavy Kosdaq also gained 1.34 percent to end the session at 750.21.

Foreign investors led the rally, snapping up 1.05 trillion won ($769 million) worth of stocks on the main bourse. Institutions also joined the buying spree with net purchases of 203.5 billion won.

Foreign buying had reached 1.14 trillion won in May, ending a nine-month selling streak on the Kospi. On the Kosdaq, foreign and institutional investors bought 148.3 billion won and 175.3 billion won, respectively. Retail investors, meanwhile, sold 1.22 trillion won on the Kospi and 304.4 billion won on the Kosdaq to lock in gains.

Overnight gains in U.S. markets added momentum. Wall Street rose after the White House signaled a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping, reviving optimism around trade diplomacy.

The Dow Jones Industrial Average climbed 0.51 percent, the S&P 500 rose 0.58 percent and the Nasdaq gained 0.81 percent. Nvidia advanced 2.8 percent, reclaiming the top spot as the world's most valuable company.

Korea-focused exchange-traded funds (ETF) traded in the United States also closed higher, with the iShares MSCI South Korea ETF up 0.24 percent and the Franklin FTSE South Korea ETF gaining 0.47 percent, as political clarity in Seoul encouraged overseas investors.

Lee’s 'Kospi 5000' vision

Analysts expect investor confidence to continue rising following Lee’s campaign promise to usher in a “Kospi 5000 era.”

Lee pledged to expand corporate directors’ fiduciary duty from its current scope of serving companies to include shareholders. The move is aimed at improving corporate governance and ending the persistent "Korea discount."

Blue-chip holding companies and brokerage firms led Wednesday’s gains.

Hanwha Group soared 20.98 percent, SK Square climbed 13.06 percent and CJ Group rose 12.19 percent. Financial groups also rallied, with KB Financial Group jumping 7.9 percent, Shinhan Financial Group climbing 7.35 percent and Hana Financial Group advancing 6.43 percent.

Among brokerages, Bookook Securities surged 22.67 percent, Mirae Asset Securities gained 13.25 percent, Shinyoung Securities grew 12.62 percent and SK Securities rose 11.34 percent.

Post-election 'honeymoon rally' could continue

Historically, Korean stocks have rallied in the aftermath of presidential elections.

The Kospi has gained an average of 3 to 4 percent one month after an election and 14 to 16 percent over the following year since the introduction of direct presidential elections in 1987, according to Eugene Investment & Securities.

The largest post-election one-month gain occurred after former President Roh Tae-woo’s victory in 1987, when the index surged 24.1 percent. It also jumped 16.6 percent after Kim Dae-jung’s win in 1997.

Conversely, the elections of former Presidents Roh Moo-hyun in 2002, Lee Myung-bak in 2007 and Park Geun-hye in 2012 saw declines in the first month after the vote, by 10.3 percent, 6.8 percent and 0.3 percent, respectively.

On a one-year basis, the Kospi rose following the elections of Roh Tae-woo, by 92.4 percent; Kim Young-sam by 32.3 percent; Kim Dae-jung by 25.4 percent; Chun Doo Hwan by 22.8 percent; Roh Moo-hyun by 14.4 percent and Moon Jae-in by 6.6 percent. It fell under Lee Myung-bak by 36.8 percent, Yoon Suk Yeol by 7.8 percent and Park by 0.9 percent.

“The rally likely reflects reduced political uncertainty more than specific policy expectations,” said Heo Jae-hwan, an analyst at Eugene Investment & Securities. “With more consumer-focused and domestic demand policies expected to roll out soon, the market should remain upbeat.”

Lee’s tech-centric agenda draws interest

Beyond governance and equity reform, investors are also eyeing Lee Jae-myung's industrial agenda. His administration has pledged 100 trillion won for AI investment and announced plans to build an “energy highway” as part of a broader push to support high-tech sectors.

“The new administration will likely prioritize sectors such as AI, data infrastructure, healthcare, content creation, defense and green energy,” said Lee Kyung-min, an analyst at Daishin Securities.

The analyst also expects increased backing for key export sectors like batteries and semiconductors to preserve Korea’s technological edge.

“If there are no major shocks, the Kospi could surpass 3,000 within the year, with the potential to reach as high as 3,300,” Lee said.