DOMESTIC POLITICS: The president, Lee Myung-bak of the GNP, has his work cut out for him if he is to steer the economy through the current downturn and maintain support among the electorate. A broadly favourable public and market view of his new economic team, appointed in January, is beginning to make Lee Myung-bak look a little more like the competent chief executive officer that he once was for the construction arm of the Hyundai conglomerate, instead of the hapless and blundering figure that he cut for most of his uncomfortable and unconvincing first year in office. He must also face the repercussions of the suicide of the previous president, Roh Moo-hyun. Political foes of the current president may use this as a rallying point to intensify opposition to him. Whether or not Roh Moo-hyun was guilty of corruption may never be known, as the investigation of his family is now closed. Critics claim that the probe was politically biased, targeting the previous president while sparing associates of Lee Myung-bak, several of whom were also implicated. Many believe that Roh Moo-hyun was hounded by prosecutors. His death may now prove to be a focus for, and catalyse, ongoing political faultlines.

Source: South Korea: Country outlook

Source: Country Forecast South Korea July 2008

Source: EIU Country Data