South Korea Holds Local Elections, Seen as Midterm Test for President Lee Jae-myung

(CNA Seoul, 3rd, Combined Foreign Reports) South Korea held local elections today, which are expected to boost President Lee Jae-myung's ruling Democratic Party. This is the first nationwide vote since Lee won the snap presidential election last year.

According to Reuters, voters will elect mayors and governors for 16 cities and provinces. The election is widely seen as a "midterm exam" for Lee's first year in office and a test of whether the conservative People Power Party can recover from the fallout of former President Yoon Suk Yeol's failed martial law declaration in 2024.

"The question is not whether the Democratic Party will win a majority, but how many seats they will win," Heo Jin-jae, director of polling at Gallup Korea, said at a press conference last week.

"If the Democratic Party wins Seoul and Busan, they can claim a landslide victory. But if they fail to take Seoul, and even Busan, then even if they win many other regions, calling it a comprehensive victory might be a stretch," he added.

Analysts point out that polls show Lee scoring high marks for his pragmatic focus on livelihood economic issues, corporate governance reform, and a stock market rally that has driven the benchmark Korea Composite Stock Price Index (KOSPI) to repeated record highs, while government spending has helped offset high energy prices.

However, critics say his government has struggled to curb housing costs and accuse him of using the courts and parliament to protect himself and his allies from criminal investigations.

A decisive victory for the Democratic Party would strengthen Lee's resolve to continue pro-market, expansionary fiscal policies and a reconciliatory diplomatic stance toward North Korea, although analysts do not expect major policy changes after the election.

Jeremy Chan, senior analyst for China and Northeast Asia at the global political risk consultancy Eurasia Group, said in a report that Lee will likely continue to prioritize economic management, market-friendly reforms, and alleviating energy prices, while avoiding measures that could unsettle investors.

"The policy implications... will likely be small," he added. (Editor: Li Peishan) 1150603