New South Korean President Lee faces crucial challenges at home and abroad

Winning a tense election that capped off months of political turmoil, new South Korean President Lee Jae-myung described his victory as the start of the country’s return to normalcy following the crisis sparked by then-conservative leader Yoon Suk Yeol’s imposition of martial law in December.

But the outspoken liberal, who assumed office immediately on Wednesday without a transition period, takes the helm during a highly challenging time for the country, which has struggled mightily to revive a faltering economy battered by months of political paralysis and compounded by U.S. President Donald Trump’s tariff hikes.

Lee also inherits from Yoon the escalating threat of North Korea’s nuclear ambitions, now further complicated by Pyongyang’s deepening alignment with Moscow over Russian President Vladimir Putin’s war on Ukraine.

Here’s a look at the key challenges facing Lee’s government:

Addressing a slow economy and Trump’s tariffs

In his inauguration speech, Lee identified the economy as his top priority, vowing