Lee Wins Election for Presidency in South Korea

Lee Myung-bak, a conservative politician famous for his success in business but dogged by questions about his character, swept to a huge victory on Wednesday in a presidential election dominated by economic concerns.

Voters cast aside widespread misgivings about Mr. Lee’s ethics, betting that he would fulfill his pledge to whip the economy to the heady levels of the 1990s, when growth averaged around 7 percent a year. But Mr. Lee’s landslide win was tempered by a new investigation that, if he is indicted, could nullify his victory before inauguration day on Feb. 25.

The results on Wednesday reflected voters’ deep dissatisfaction with the liberal administration of President Roh Moo-hyun, who is limited to a single five-year term by the Constitution, and his handling of the economy. By turning to Mr. Lee, the candidate of the opposition conservative Grand National Party, South Koreans put bread-and-butter issues ahead of the larger themes of social equality, political reform and reconciliation with North Korea that had captured their votes in the past decade.

This time, relations with the North or the United States barely registered among voters. But analysts said Mr. Lee, a pro-business, pragmatic politician not known for taking strong ideological positions, would improve Seoul’s strained relations with Washington. As for North Korea, Mr. Lee has said that he would continue the policy of engaging it economically but demand more concessions.

With 48.6 percent of the total votes, Mr. Lee, who had been leading in opinion polls for months, fell slightly short of his goal of garnering more than half of the votes, something no one has accomplished since South Korea began holding democratic elections in 1987. But he won by the largest margin since 1987, with his nearest rival, Chung Don-young, a candidate allied with Mr. Roh, coming in with only 26.2 percent.

Still, analysts and voters interviewed indicated that the numbers did not amount to a strong endorsement of Mr. Lee but reflected the absence of viable contenders among the 12 candidates. Their campaigns attracted little attention in a country where presidential elections have been accompanied by massive street rallies, and the turnout on Wednesday, of 62.9 percent, was a record low.

“I voted for Lee Myung-bak even though I think he’s a little corrupt,” said Kim Cho-rong, 21, a college student studying interior design. “I figured someone who is a little guilty but competent was better for our society than someone who is innocent but incompetent.”

In recent years, a general economic malaise gripped South Koreans as economic growth slowed to the range of 3 to 5 percent, small and medium-sized companies struggled to stay afloat and youth unemployment rose. Mr. Roh appeared out of touch, especially after his efforts to squelch real estate speculation at one point made housing even more unaffordable. Even supporters who credited him with improving ties with North Korea and creating more openness in government turned against him and his liberal party.

“I’ve always voted for liberals but this time the economy became such a huge issue,” said Kim Sung-ki, 54, a businessman, after casting his vote in downtown Seoul. “So I decided to take a fresh look.”

Mr. Lee, who turned 66 on Wednesday, is strongly identified with South Korea’s high-growth years because he became, at the age of 36, the chief executive of Hyundai Construction and then headed several subsidiaries at Hyundai, the country’s best-known conglomerate. From 2002 to 2006, he served as mayor of Seoul and became a top presidential contender after completing the restoration of a stream in downtown Seoul.

But he has long been bedeviled by questions about his ethics. He has admitted to falsely identifying his children as employees to evade taxes, and of registering them at a separate address to send them to better schools. Early this month, prosecutors cleared him of charges of involvement in a stock manipulation case at a company called BBK, with which he denies any connection.

But on Monday, a day after a video emerged in which Mr. Lee appears to claim that he founded the company, the liberal-controlled National Assembly voted to appoint a special counsel to reopen the case. If Mr. Lee is indicted before the transfer of power on Feb. 25, his victory could be annulled and another election called. As president, Mr. Lee would enjoy immunity from any criminal prosecution.

“His ethical problems could undermine his status as president-elect and eventually affect his ability to govern as president,” said Hahm Sung-deuk, a political scientist at Korea University. “On the other hand, he was able to get a big victory and a popular mandate, so that could help him overcome his problems.”

Analysts said Mr. Lee, who is known to be pro-American, would help improve relations with the United States. The Bush administration was always wary of Mr. Roh, who was elected in 2002 partly by playing to anti-American feelings at the time; massive demonstrations were held after two South Korean girls were fatally hit by a United States military vehicle.

Differences over North Korea — between the Bush administration’s initially tough policy toward Pyongyang and what it perceived as Mr. Roh’s indulgent engagement and coddling of the North — strained relations even further. Officials on both sides warned privately of the possible end of the countries’ security alliance.

“Relations of mutual trust have eroded over the years,” said Han Sung-joo, who served as South Korea’s ambassador to the United States from 2003 to 2005 during the Roh administration. “But I think the new government will be able to restore that trust, though relations have already started improving since the turnaround by the Bush administration on the North Korean nuclear issue.”

“Lee Myung-bak has positive views of the United States and is in general very pragmatic, not ideological like the incumbent president,” Mr. Han added. “So his policy toward not only the United States, but also North Korea, should be very pragmatic.”

Mr. Lee has said that he would offer extensive financial assistance to the North if it abandons its nuclear program. He also said he would emphasize economic projects and pledged to raise the North’s per capita income to $3,000 within 10 years if it opens up for business.

North Korea is said to prefer to deal with a liberal government in Seoul that is willing to give aid with few strings attached. Its official Korean Central News Agency, which routinely assailed Mr. Lee and his party, dropped its attacks early this month in an indication that the North was also readying itself for a new president down south.

(Published by Times Online, December 19, 2007)