Momentum from US-Korea Summit and Restart of Mexico Trade Agreement Talks

Swift Action Needed on Presidential Office and Cabinet Appointments Alongside Trip Outcomes

Five Days Until Launch of Serious Crime and Prosecution Agencies... Disagre

President Lee Jae-myung returned home on September 27 after a 5-night, 7-day official visit to the United States and Mexico. While in New York for the United Nations General Assembly, he proposed a vision for peace and co-existence on the Korean Peninsula and held a summit meeting with U.S. President Donald Trump. In Mexico, he broadened the institutional foundation for economic and advanced industrial cooperation between the two countries. Immediately upon his return, President Lee faces the task of following up on the outcomes of his trip while also addressing a host of pressing domestic issues, including vacancies in the Blue House and Cabinet, criminal justice system reforms, instability in the real estate market, and internal discord within the pro-government bloc.


President Lee and First Lady Kim Hye-kyung arrived at Seoul Air Base aboard the presidential jet, Air Force One, on this day. It was their return after departing on the 21st, seven days prior. At the airport, Democratic Party leader Kim Min-seok, floor leader Han Byung-do, Chief Presidential Secretary Kang Hoon-sik, Senior Presidential Secretary for Political Affairs Hong Ik-pyo, and Minister of the Interior and Safety Yoon Ho-jung were present to welcome them. President Lee shook hands in turn with those who came to greet him. Minister Yoon offered his regards, saying, "Thank you for your hard work," and Representative Kim, while conversing with the president, let out a hearty laugh. President Lee is expected to receive briefings from his staff on domestic affairs immediately after his return, share the achievements of his overseas trip, and review follow-up implementation plans.


President Lee Jae-myung and First Lady Kim Hye-kyung, returning home after their official visits to the United States and Mexico, are seen getting off the Air Force One at Seoul Air Base in Seongnam on the 27th and moving to a vehicle. 2026.9.27 Yonhap News Agency

President Lee Jae-myung and First Lady Kim Hye-kyung, returning home after their official visits to the United States and Mexico, are seen getting off the Air Force One at Seoul Air Base in Seongnam on the 27th and moving to a vehicle. 2026.9.27 Yonhap News Agency

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A 'Peaceful Coexistence' Blueprint at the UN...Surprise Summit with Trump


During the first stop of his trip in New York, President Lee presented a three-fold blueprint for peaceful co-existence on the Korean Peninsula in his keynote address at the UN General Assembly. These included 'inclusive peaceful co-existence,' which seeks joint growth based on mutual respect and acceptance of differences between North and South Korea; 'stable peaceful co-existence,' which calls for institutional measures to prevent crises and manage conflicts; and 'responsible peaceful co-existence,' which aims to contribute to global peace beyond the Korean Peninsula.


President Lee also proposed a step-by-step approach: first 'halting' the advancement of North Korea’s nuclear and missile capabilities, then gradually 'reducing' them, with the long-term goal of realizing a 'nuclear-free Korean Peninsula.' He outlined the plan to reactivate North Korea-U.S. dialogue to break the deadlock in the peace process on the peninsula.


He also introduced the 'K-Initiative,' outlining Korea’s contribution to global issues. This consists of a 'Global AI Basic Society' to share the benefits of artificial intelligence with all nations and peoples, a 'Green Transformation' to address the climate crisis, and an 'Energy Supply Chain Alliance' to jointly respond to challenges in energy transport corridors. Notably, he also proposed the formation of a 'Constructive Contributors Alliance,' in which countries with the capacity and will would cooperate to address supply chain shocks like the crisis in the Strait of Hormuz.


The highlight of his visit was a surprise summit with President Trump that lasted about 30 minutes, which took place amid progress on investment negotiations with the United States. The two leaders discussed major Korea-U.S. security issues such as strategic investment in the U.S., wartime operational control, and nuclear-powered submarines, and also exchanged views on the need to resume North Korea-U.S. dialogue. The issue of the Strait of Hormuz, where the U.S. has asked South Korea to expand its contribution, was not discussed during the summit.


President Lee also focused on economic diplomacy. At the 'Korea Investment Summit 2026' in New York, he presented growth strategies, including the 'three mega projects' of semiconductors, physical AI, and AI data centers, to major Wall Street investors. He also revealed plans to double Korea’s memory semiconductor production capacity over the next five years, appealing for further investment in Korea.


President Lee Jae-myung, who is visiting the United States to attend the United Nations General Assembly, is holding a summit meeting with U.S. President Donald Trump at a hotel in New York on the 22nd (local time). 2026.9.23 Yonhap News Agency

President Lee Jae-myung, who is visiting the United States to attend the United Nations General Assembly, is holding a summit meeting with U.S. President Donald Trump at a hotel in New York on the 22nd (local time). 2026.9.23 Yonhap News Agency

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Proposed Comprehensive Trade Agreement to Mexico... Institutionalizing Economic Cooperation


During the first state visit to Mexico in 16 years, President Lee expanded the scope of bilateral relations into the economic and advanced industrial sectors. He and President Claudia Sheinbaum adopted the '2026-2030 Korea-Mexico Joint Action Plan' and concluded negotiations to amend the investment protection agreement, which had been ongoing for seven years. The two countries established a new export-import bank credit line worth 100 million dollars, and agreed to expand cooperation into areas such as AI, space, and defense. A total of 16 memoranda of understanding (MOUs) were signed during the visit, and a separate declaration on AI cooperation was also adopted.


Most notably, the visit provided an opportunity to revive discussions on a Korea-Mexico trade agreement, which had effectively stalled since 2008. At the Korea-Mexico Business Forum, President Lee called for an early resumption of talks on a comprehensive trade agreement between the two countries. Korean businesses also requested the swift conclusion of an economic agreement that would provide institutional support for economic cooperation with Mexico, which is a critical base for entering North American and Central and South American markets. Essentially, he outlined plans to put free trade agreement (FTA) or comprehensive economic partnership agreement (CEPA) talks between Korea and Mexico back on track.


Additional Blue House and Cabinet Appointments...Prosecutorial Reform and Housing Prices Remain Key Challenges


President Lee must now translate his diplomatic achievements into actual investments and projects while simultaneously addressing unresolved domestic issues that accumulated during his trip. The immediate priority is to decide on a sweeping reshuffle at the Blue House. On the day of President Lee's departure, September 21, Chief Presidential Secretary Kang Hoon-sik tendered his resignation, citing 'overall responsibility' for recent personnel controversies. If President Lee accepts his resignation, it will further widen the gap left by the earlier departure of Policy Chief Kim Yong-beom on the first of this month, deepening the leadership vacuum among key Blue House aides. Decisions regarding Kang’s fate and the appointment of a new policy chief could potentially lead to further restructuring of the Blue House.


Vacancies in the Cabinet are also a pressing issue that can no longer be delayed. With nominee Yong Hyein stepping down as Minister of Gender Equality and Family on September 13 and nominee Kim Seungwon withdrawing from consideration as Minister of Justice, replacements for both ministries are urgently needed. In particular, the selection of the next Minister of Justice is time-sensitive, as the Prosecution Service and the Serious Crime Investigation Agency are scheduled to launch on October 2.


The appointment of the inaugural chief of the new crime investigation agency is also a potential political flashpoint. Nominee Kim Ji-yong, a former prosecutor, is facing opposition in some pro-government circles due to his past stance against reducing prosecutorial investigative authority. Although President Lee has ordered additional vetting and Kim stated his commitment to the principle of separating investigation and prosecution for criminal justice reform, suspicions remain among some within the ruling bloc, who cite his track record during the previous Yoon Suk Yeol administration.


Housing is the most urgent matter concerning the lives of citizens. As apartment prices in Seoul continue to rise for an extended period and this trend is starting to spread to surrounding areas, the market is closely monitoring whether the government will implement additional measures. Having emphasized during a press conference on the 18th that he will "absolutely stabilize" the real estate market by expanding supply and curbing speculation, President Lee is expected to reassess the market and consider further measures following his return home.

Yonhap News

Yonhap News

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Falling Poll Numbers and Discord Within the Pro-government Bloc...Chuseok Public Sentiment Put to the Test


Resolving internal discord within the pro-government bloc is also a challenge. Even within the ruling camp, the speed of prosecutorial reform, the establishment of the Prosecution Service, and the appointment of Kim Ji-yong have drawn criticism. At a meeting with Korean residents in Mexico, President Lee emphasized that "if you move too fast, too far, and too hastily on reforms, you’ll face backlash," underscoring the need to produce real results while minimizing resistance and opposition. Referring to the debate over repealing the National Security Act during the Roh Moo-hyun administration, he pointed out that excessive competition to appear more progressive could actually block substantive reform from being accomplished.


Some political observers interpreted these comments as directed at writer Yoo Si-min and others who have recently criticized the government’s approach to prosecutorial reform. Yoo previously accused President Lee of "deceiving the public" with his reform agenda. The Blue House publicly responded by expressing regret over "distorting the president’s commitment to prosecutorial reform." Thus, even during his overseas trip, divisions within the pro-government bloc over the speed and method of reform were laid bare.


Rebounding his approval rating after the Chuseok holiday will be another important objective for President Lee. Recent polls show his job approval lingering at a low point since his inauguration, with a notable decline among moderate voters. While the downward trend has stopped for now, analysts say it is too soon to declare a reversal in public sentiment. During the Chuseok holiday, President Lee delivered a message of unity, promising to "support the lives of every citizen, regardless of differing opinions or perspectives."



President Lee Jae-myung, who returned from his tour of the United States and Mexico, is greeting Chief Secretary Kang Hoon-sik, who came to welcome him at Seoul Airport in Seongnam on September 27, 2026. Photo by Yonhap News Agency

President Lee Jae-myung, who returned from his tour of the United States and Mexico, is greeting Chief Secretary Kang Hoon-sik, who came to welcome him at Seoul Airport in Seongnam on September 27, 2026. Photo by Yonhap News Agency

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