The ruling party scored a sweeping victory in the June 3 local elections and parliamentary by-elections. With the Democratic Party of Korea campaigning on "stability in state affairs" and the People Power Party emphasizing "checks and balances," voters threw their support behind the ruling party. The Democratic Party won big across races for 4,227 local officials, including 16 metropolitan and provincial governors, 227 mayors and county and district heads, 3,968 metropolitan and provincial council members, and 16 superintendents of education. The ruling party also secured a majority in the parliamentary by-elections held simultaneously in 14 districts, a contest sizable enough to be called a "mini general election."
This local election can be regarded as one in which voters demonstrated a strong sense of ownership, recording a turnout of 61 percent—the second highest ever. Yet critics say the spirit of "grassroots democracy" was diluted as this year's local elections again devolved into a proxy war for central politics and the familiar pattern of partisan division. Mudslinging between the rival parties, populist pledge competitions, and rounds of complaints and accusations dominated, while policy and candidate vetting were pushed aside. Compounding matters, an unprecedented incident occurred in which voting was suspended at 14 polling stations across Seoul after ballots ran out. This is a serious matter that infringed on voting rights and triggered grave distrust toward the fairness of election management.
The Democratic Party assessed its victory by saying, "The public sentiment to lend strength to President Lee Jae-myung's stability in state affairs has been confirmed." It is not unreasonable to interpret the result as voters siding with the ruling party's call for "stability in state affairs" over the opposition's "judgment on the administration," given unstable conditions at home and abroad including the Middle East war and rising exchange rates and prices. Still, the ruling party must not grow complacent over having seized local power on top of presidential and parliamentary authority, and should respond with livelihood-focused politics and economic results.
There is concern that the reality our economy now faces is a "splendid on the outside, hollow on the inside" situation. Growth of more than 2 percent is forecast this year, but with most manufacturing industries losing vitality, exports and real income are showing a "K-shaped polarization" trend. To achieve a "sustainable economy" in which the great majority of citizens prosper evenly, potential growth must be raised through structural reform. If we waste time complacent in the semiconductor super cycle, the possibility cannot be ruled out that potential growth will fall to the 0 percent range in the 2030s, as the Korea Development Institute (KDI) has warned. President Lee himself has repeatedly stated, "The greatest task at hand is rebounding potential growth," ordering structural reforms in six areas: regulation, finance, the public sector, pensions, education, and labor. Yet critics say execution has been slow, with the government intoxicated by superficial growth recovery and mindful of voter sentiment in the local elections.
The challenges President Lee must address over his remaining four-year term are many. Ahead of the first anniversary of the current administration's launch, President Lee pledged at the Cabinet meeting on the 2nd, "From the second year of my term, building on the policy outcomes achieved so far, we must produce greater substantive changes in citizens' lives, raise the speed further, and broaden the scope further." To do so, structural reform for sustainable development of the Korean economy must be accelerated. The ruling party and government should accelerate regulatory reform, securing labor flexibility, and overhauling the education system to identify future growth engines beyond semiconductors and to foster an innovation ecosystem. Regulatory bills that dampen corporate investment incentive, such as the Yellow Envelope Act and the 52-hour workweek system, must be boldly amended.
Of course, restructuring the economy's underlying constitution is a daunting task that is expected to draw backlash from stakeholders. Breaking through this requires political leadership grounded in national unity. Mobilizing public consensus is possible only when the constitutional values that uphold the Korean community—the separation of powers, the market economy, and the rule of law—are respected. In that sense, the upcoming constitutional revision discussions should follow due process of national consensus, including the National Assembly operating bipartisan consultative bodies. Contested issues such as granting supplementary investigative authority to the prosecution service and legislating a special prosecutor act on the withdrawal of indictments should also be decided at the eye level of the public. The opposition People Power Party, having failed to sever ties with the martial law incident and having been absorbed only in internal power struggles, must deeply reflect on its faults and join in restructuring the economy for the future as a sound opposition party.
Beyond structural reform, we face a long list of difficult challenges, including household debt that has reached dangerous levels, U.S. pressure through non-tariff barriers, and security threats stemming from the tightening alignment among North Korea, China, and Russia. President Lee and both the ruling and opposition parties must put their heads together to spread the warmth of economic growth broadly and to bequeath a country with a mature democracy. The Democratic Party must respect the opposition as a partner in state affairs and follow reasonable procedures for policy consultation. The People Power Party, which suffered defeat in this election, must reinvent itself as a new conservative party through bold personnel reform including the resignation of the entire leadership and the presentation of forward-looking policies. Beyond the June 3 local elections, any party that fails to heed the people's command to look after livelihoods and revive the economy cannot escape judgment in any election. As always, the issue is the economy.
