Seoul in a Spin: Political Turmoil before the South Korean Election
Election campaign in South Korea disrupted by court decision and resignations
South Korea's upcoming presidential election is shaping up to be a rollercoaster ride, with a Supreme Court ruling casting a shadow over the leading candidate Lee Jae-Myung's eligibility and multiple high-profile resignations rocking the government.
On Thursday, the highest court in the land raised doubts about Lee's eligibility for the top job. The Seoul High Court now has the responsibility to decide if the frontrunner can run on June 3. Later in the day, Prime Minister Han Duck Soo announced his resignation, fuelling speculation that he plans to enter the election. Han had been temporarily holding the presidential office, which he was due to hand over to Finance Minister Choi Sang Mok. However, Choi refused at short notice and also resigned from his cabinet post. An impeachment process is underway against Choi in parliament. Meanwhile, Education Minister Lee Ju Ho has been appointed as the acting president.
The political landscape in South Korea has been in turmoil for months. President Yoon Suk Yeol was impeached and even declared martial law in December, leading to various politicians assuming the state leadership. Among them was Prime Minister Han, who was removed by parliament on December 27 but was later reinstated by the Supreme Court on March 24. During this period, Lee made significant gains in the polls, challenging the political establishment.
The Supreme Court ruled on Thursday that Lee had misled voters with false statements in 2022, violating election laws. While an appellate court had previously acquitted him, the Supreme Court reached a different conclusion. It's yet to be seen if the appellate court will issue a ruling before the election. If convicted, Lee could be barred from running for at least five years.
"This could be a political setback for Lee and his Democratic Party," said political scientist Shin Yul. "Moderate voters, around 10% of the total, may be influenced by this news." However, Lee has maintained his optimism, denying the allegations against him.
(Reporting by Christian Ruettger and Scot W. Stevenson; Editing by Kerstin Doerr; For further questions, please contact our newsroom under [email protected] (for politics and economics) or [email protected] (for companies and markets).)
Meanwhile, in the Stock Market...
Given the current political instability, South Korean stocks might face some turbulence. Traders must remain cautious during these uncertain times.
Looking Ahead...
Keep an eye on news related to the South Korean political landscape and the potential impact on the stock market. Any developments could present opportunities for savvy investors to make a move.
Sources: 1, 2, 3
Enrichment Insight: The current status of South Korean presidential candidate Lee Jae-Myung's eligibility is uncertain following the Supreme Court ruling on May 1, 2025. The Supreme Court overturned an appellate court’s acquittal and ordered a retrial in the election law violation case, remanding it to the Seoul High Court for a new ruling. If convicted, Lee would be barred from seeking public office for 10 years.
- Given the Supreme Court's ruling, frontrunner Lee Jae-Myung's eligibility for South Korea's presidential election is uncertain, with the Seoul High Court now responsible for making a decision.
- The political instability caused by the ongoing court case against Lee, a candidate from the Democratic Party, may have implications for South Korean stocks, requiring traders to exercise caution.
- Political scientist Shin Yul suggests that the Supreme Court's decision could be a political setback for Lee and his party, potentially influencing moderate voters.
- should keep track of further developments in the South Korean political landscape, as potential changes could offer opportunities for informed investors.
