Diplomatic momentum urged with bipartisan backing by Lee

South Korean President Lee Jae Myung has returned from his overseas trips to Tokyo and Washington, marking a significant period of diplomatic engagement. Here's a rundown of the key events and developments from these meetings.

During his discussions with Prime Minister Shigeru Ishiba in Tokyo, the focus was on bolstering cooperation on regional security, economy, artificial intelligence, and disaster response. In Washington, South Korean firms made substantial commitments in US sectors like AI, semiconductors, biotech, shipbuilding, nuclear energy, and liquefied natural gas.

President Lee also held summits with both leaders, describing President Donald Trump as a "peacemaker" and welcoming future engagement to promote peace on the Korean Peninsula. North Korea issues were discussed during these meetings, with Trump expressing interest in meeting again with North Korean leader Kim Jong-un. However, the likelihood of Kim Jong-un attending the upcoming Asia-Pacific Economic Cooperation summit in South Korea remains low.

On the domestic front, the Lee administration announced a 728 trillion won ($525 billion) proposal for next year's budget, marking an 8.1 percent increase from the current year. Some 10 trillion won of this total has been allocated to foster the country's AI sector, including introducing the technology across industries, daily life, and public services.

The Defense Ministry sought a budget of 66.29 trillion won for next year, up 8.2 percent from this year, to fund advanced weapons acquisitions and boost salaries for junior officers. The proposal also includes efforts for early procurement of 50,000 graphics processing units.

In a bid to support his administration's diplomatic efforts, President Lee has urged bipartisan cooperation between the Democratic Party of Korea and the People Power Party. The exact opposition party Lee discusses regarding this cooperation with Japan and the USA was not specified in the search results. The 2026 budget plan will be submitted for review by the Assembly, and Lee has planned to meet with the leaders of both parties to brief them about the results of his recent overseas trips and discuss further cooperation on diplomacy.

National security adviser Wi Sung-lac stated that it would be "constructive" not to "set expectations too high" for a revival of dialogue with North Korea, as North Korea shows no willingness to engage in dialogue at the moment. He also stressed that raising expectations too high could hinder efforts to draw out a response from the North.

A significant development on the domestic front is the approval of the "Yellow Envelope" bill, an amendment to the Trade Union and Labor Relations Adjustment Act, which is set to take effect in March next year. This bill grants subcontracted workers the right to unionize, broadens the definition of "employer," and restricts companies from seeking excessive damages over strike disruptions.

These developments mark a period of active diplomatic engagement and domestic policy changes for South Korea, setting the stage for potential advancements in various sectors in the coming year.