Conservatives won the election in South Korea

In South Korea, Asia's fourth largest economy, the election was won by former attorney general Yoon Suk-Yeol, who gained popularity for his investigations into corruption. The race ended with the lowest margin in the history of general elections. Yoon was only 0.8 points ahead of his opponent with 48.6 percent of the vote. The new president is known for his hawkish attitude towards China and North Korea. He argues that if there is an imminent and tangible danger to North Korea, a preemptive attack should be carried out. Former President Moon, on the other hand, pursued a policy of "peace" with Pyongyang. Considering that the North, led by Kim Jong-un, has intensified its missile tests in recent months, the possibility of rising tensions in the peninsula in the coming period is not low.

The balance of policy towards China may change

On the other hand, there is a possibility that South Korea will abandon its balance policy against China during the period of former President Moon. Yoon is eager to host more of the Thaad missiles, which Beijing is so furiously opposing. The Thaad system, capable of tracking and detecting possible missile launches in northern China, was deployed six years ago in South Korea, but was limited by Beijing's response. There was a possibility that South Korea would also participate in the naval exercises organized by Japan, the USA, Australia, Germany, France, and England against China. The Seoul administration was reluctant to take part in these exercises due to its policy of balance in relations with China.

Income inequality is a critical issue

The biggest problem awaiting the leader in the new beginning is the inequality of income distribution. The big problem that is the source of TV series like Squid Game is getting heavier. The household debt burden is greater than the gross domestic product. House prices have doubled in Seoul over the past four years. Real income, on the other hand, stood still for the broad masses of the people. In this context, the failure of Moon's social policies was one of the main factors in losing the elections. Yoon's recipe is growth, and accordingly, the government is expected to make peace with large conglomerates called Chaebol.

Corporate tax cuts are expected

Large groups such as Samsung, LG, and Hyundai form the backbone of the South Korean economy. Whether these groups disrupt competition and productivity is one of the most heated debates in the country. Analysts expect a reduction in corporate tax in the coming period. It is said that the 25 percent capital gains tax introduced during the Moon period could be abolished. It seems certain that Yoon will follow market-friendly policies. As a matter of fact, the most striking statement among the sentences that stood out from the victory speech was the phrase "I will create employment and growth by focusing on the private sector." Meanwhile, on the day when the global risk appetite was clear, the Seoul Stock Exchange paid the highest premium of the year. Shares in construction, energy, technology, and defense led gains. Net fund inflows to large groups drew attention.

Nuclear shares rose after the ballot box result

On the other hand, Yoon's win also caused a jump in nuclear energy stocks. In South Korea, electricity costs are among the main concerns of the public and the business world. The new president advocates using nuclear reactors to meet 30% of the country's electricity needs. The current government, on the other hand, is in favor of deactivating nuclear power plants over time. South Korea is in the class of advanced countries in the field of nuclear energy.