Pres. Lee’s economic sprint: early gains, but big tasks ahead

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon.

President Lee Jae Myung's first month in office has been defined by urgency and action.

On day one, he chaired an emergency economic task force, pushed through a multi-trillion-won supplementary budget, and laid the groundwork for structural reforms.

Early indicators point to regained market confidence—consumer sentiment is up, and the KOSPI crossed the 3,000 mark for the first time in over three years.

But external pressure is mounting. President Trump has announced the U.S. will begin sending tariff rate letters to countries starting July 4th, warning that those without finalized deals by the 8th will face higher duties.

With Korea still in talks, it's a critical test for the administration's trade strategy.

In our fourth installment to mark one month of the Lee Jae Myung presidency, we turn to the economy—how the administration is responding to public anxiety, and what early moves signal about its broader economic direction.

To help us break things down, we're joined by Jin-ill Kim, Professor of Economics at Korea University. Welcome.

Also joining us online is Hwagyun Kim, Professor of Banking and Finance at Texas A&M University's Mays Business School. Good to see you.

(Jin-ill Kim) President Lee's first month has been a blitz—emergency meetings on day one, a budget passed in two weeks. How do you assess this fast-paced approach?

(Hwagyun Kim) Building on that momentum—at his one-month press conference, President Lee pointed to the KOSPI's rally as one of the administration's early wins.

Just two weeks in, the index broke through the 3,000 mark for the first time in three and a half years. What message did this send to the financial markets, and how have they responded overall?

(Jinill Kim) And it's not just the stock market reacting—consumer sentiment in June hit a four-year high.

From what you've seen, Prof. Jin-ill, does this indicate that households are starting to believe in an economic rebound?

(Jinill Kim) Turning to appointments, key Cabinet nominations, including the Finance Minister, have been announced.

Within this new economic control tower, what stands out most to you?

(Hwagyun Kim) On the global front, tariff negotiations with the U.S. remain President Lee's biggest diplomatic and economic hurdle.

President Trump has announced that starting as early as July 4th, the U.S. will begin sending official letters to countries, detailing the tariff rates they will face.

Against this backdrop, what is expected for South Korea? Prof. Hwagyun, And, how should Korea interpret Washington's latest move?

(Jinill Kim) And now, with the U.S. moving to send out tariff notices as early as this weekend, Korea's top trade negotiator Yeo Han-koo is heading to Washington, promising fair terms.

Prof. Jin-ill, What kind of strategy is needed now to avoid those higher tariffs?

(Hwagyun Kim) Meanwhile, even as tariff tensions rise, Korea posted record June exports, up more than 4%, powered by semiconductors and autos.

What's driving this export rebound in the face of mounting U.S. trade pressure?

(Hwagyun Kim) Finally, looking further ahead—President Lee has vowed to modernize Korea's capital markets and usher in a new KOSPI 5000 era.

In your view, how feasible is this goal, and what concrete steps are needed to get there?