With South Korea’s presidential election fast approaching, citizens rejoice in the political turmoil. Yet they are facing the same economic backslides and demographic timebombs as everything else. After a rocky six months, the upcoming election is an opportunity for candidates to respond with bold, innovative ideas to help heal a divided nation.
South Korea, a key US ally and a significant economic and cultural powerhouse in Asia, is experiencing a rapidly aging society coupled with plummeting birth rates. This shadow demographic crisis threatens to cast a long shadow over its coming workforce and economic security. In the intervening years, that need has grown more acute. The country faces serious challenges from a declining population, which will drive all aspects of society from their healthcare to their labor markets.
In fact, over the past few months, South Korea’s economic star has dimmed considerably. By the first quarter of 2025, the economy had surprisingly shrunk. This drop was attributed in part to the US tariffs from the trade war that former President Donald Trump initiated. This recession has exacerbated skyrocketing youth unemployment rates and a significant decrease in consumer spending. It is a tumultuous time for South Korea politically and economically. That makes the upcoming election so important, not just for the City, but for shaping its recovery strategy.
Amid these pressing issues, South Korea continues to host nearly 30,000 American troops, reinforcing its close security alliance with the United States. This partnership continues to be incredibly important, as evidenced by North Korea’s developments in military technology and sustaining modernization of their armed forces. South Korea, alongside Japan and the US, has been working to counter China’s growing influence in the Asia-Pacific region, further complicating the geopolitical landscape.
We hope the presidential candidates recognize that these are complex, intertwined challenges. And Lee Jae-myung, the Democratic Party candidate, has focused his campaign on the need to reduce tensions on the Korean Peninsula. He calls for policies to support small businesses and encourage development of the artificial intelligence sector. His focus on innovation and economic revitalization reflects a desire to address both immediate and long-term concerns facing South Korea.
Lee’s biggest challenge will come from Kim Moon-soo, a member of the conservative People Power Party (PPP). He is a vigorous proponent of proposals to stabilize the economy and strengthen national security educationally. Public dissatisfaction with economic conditions is growing. Our voters are acutely aware that the decisions made in this cycle will shape the character of their policy victories to come.
“The country is suffering and the emotions are so hard that I came out early in the morning with the hope that we could achieve an overwhelming victory to ease this even a little bit.” – Jung Han-byeol
As the world awaits election day, citizens in both countries are filled with hope, fear and uncertainty about what the future holds. Most all of us are searching for a presidential candidate who has demonstrated the agility to navigate the depths of not only metro mayhem but international chaos. The urgency of South Korea’s demographic crisis adds another layer to the electoral discourse, as candidates propose varying solutions to encourage higher birth rates and address the aging population.
Youth unemployment continues to be a critical issue, as millions of young South Koreans flock to desirable, stable job markets in the face of a more competitive economic environment. Nationally, unemployment rates for this demographic have skyrocketed. This more than anything underscores the urgent need for broad, inclusive job creation strategies that can more equitably spread the growth potential of emerging industries.
