Lee Jae-myung Government's 500 Days of "Joy, Anger, Sorrow and Pleasure": Achievements, Headwinds, Normalization and Fractures Intertwine

Actively advancing national interests through U.S. negotiations
Prosecutorial reform sparks divisions within the Democratic Party
Real estate issues fuel public discontent
Now is the time to prove themselves

President Lee Jae-myung, who took the oath of office wearing a tie blending red and blue, the colors symbolizing "unity," marked his 500th day in office on Oct. 16. His government began without a transition committee, amid the aftermath of martial law, and celebrated the conclusion of trade negotiations and the KOSPI reaching 9,000. But setbacks involving real estate and appointments, compounded by divisions within the ruling camp, drove his approval rating down into the 30% range. It was a 500-day period in which achievements and headwinds, normalization and fractures, alternated.

Joy: A long and difficult negotiation with the U.S. reaches a close

Diplomacy was an area in which the government actively pursued the realization of national interests. In November 2025, President Lee concluded negotiations on $350 billion in investment in the United States, securing a 15% tariff rate on Korean-made automobiles and approval to build nuclear-powered submarines. On Sept. 30, he also finalized the first investment destinations, securing terms for sharing returns that were more favorable to Korea than those previously proposed. President Lee did not hide his satisfaction, saying, "South Korea is the one that reached the conclusion most aligned with its national interests." The country also successfully returned to the international diplomatic stage, where its standing had been shaken by martial law. Shortly after taking office, President Lee made his debut in multilateral diplomacy at the Group of Seven (G7) summit in Canada. He issued a joint press statement at a summit with then-Japanese Prime Minister Shigeru Ishiba, the first in 17 years, and launched shuttle diplomacy. In November 2025, he also secured a state visit to South Korea by Chinese President Xi Jinping, the first in 11 years.

Anger: Clashes among allies of prosecutorial reform

On Oct. 2, the Prosecutors' Office was abolished and the Serious Crimes Investigation Agency and the Prosecution Service were launched, bringing to an end the prosecutorial system that had continued since 1948. The change marked an institutional shift toward separating investigations from indictments, but concerns about gaps in operations followed as both agencies began work without chiefs. Controversy surrounding Kim Ji-yong, a former senior prosecutor and nominee to head the newly established Serious Crimes Investigation Agency, escalated into a dispute within the ruling camp. On Oct. 4, President Lee referred on social media to "Mugeukpa," meaning "irresponsible extremists." The following day, he warned that no one should use prosecutorial reform as a pretext to let personal interests dictate appointments, investigations, or prosecution work. In a paradoxical turn, the moment the shared goal of abolishing the Prosecutors' Office was achieved, divisions over the approach to reform and appointment authority became all the more apparent.

Sorrow: Trust lost over homes and people

Real estate and personnel issues alienated public opinion. While prices for high-end homes moderated, housing costs for ordinary people rose. In a survey released by the Korea Real Estate Board on Oct. 15 covering the second week of October, apartment prices in Gangnam and Seocho fell for the 10th consecutive week. However, Seoul-wide home sale prices rose 0.16% and jeonse prices rose 0.18%, marking 88 consecutive weeks of increases for both. KB Kookmin Bank's Seoul Apartment Monthly Rent Price Index also rose 1.8% in August. The burden of finding it difficult both to buy and rent a home grew. Gaps in vetting for government appointments remained largely unaddressed. Education Minister nominee Lee Jin-sook, embroiled in a plagiarism controversy over her dissertation, was among those who failed to secure their appointments, along with Kang Sun-woo, Yong Hye-in, and Kim Seung-won. Kim Yong-beom, the former policy chief, left the Presidential Office over the real estate issue, while Kang Hoon-sik, the former chief of staff, stepped down, taking responsibility for personnel matters.

Joy: Cheers as the KOSPI hits 9,000

The stock market delivered the most dramatic achievement. On June 18, the KOSPI broke above 9,000 for the first time ever. President Lee laid the groundwork for a stock market rally through amendments to the Commercial Act and tax reforms. The real economy also posted solid results: gross domestic product (GDP) grew 3.7% in the second quarter from a year earlier, while exports in September hit a record $120.9 billion. However, the limitations were also clear. Since the launch of single-stock leveraged exchange-traded funds (ETFs), the stock market has repeatedly risen and fallen, recently slumping into the 5,000s. In the real economy, improvements in indicators have yet to translate into people's daily lives, as reflected in a decline in the number of young people in employment.

This content was produced with the assistance of AI translation services.