New president vows to revitalise South Korea's economy

Pro-US former businessman Lee Myung-bak took the oath of office as South Korea’s new president today, vowing to revitalise the economy, strengthen relations with the US and deal with nuclear-armed North Korea.

Conservative Mr Lee, nicknamed The Bulldozer for the can-do image he honed as a construction company chief and later as mayor of Seoul, was sworn into office in a colourful outdoor ceremony at the National Assembly in the presence of tens of thousands of onlookers.

Mr Lee, 66, said that revitalising the economy would be his top priority as president, while vowing to boost ties with the US and calling for summits with North Korea as needed.

“Economic revival is our most urgent task,” Mr Lee said, according to a copy of a speech he was delivering at his inauguration ceremony.

His presidency ends a decade of liberal rule that critics say hindered economic growth, was too soft on Communist North Korea and fomented tension with traditional close ally Washington.

Officials and ordinary citizens attended the Seoul inauguration in near-freezing temperatures, along with foreign dignitaries including US secretary of state Condoleezza Rice and Japanese prime minister Yasuo Fukuda.

Mr Lee, the 10th man to be South Korea’s president and the first to come from a business background, will serve a single five-year term, succeeding Roh Moo-hyun.

He overwhelmingly won December’s election on a promise to make the economy his top priority.

He has promised to achieve annual growth of 7%, double the country’s per capita income to £21,000 over a decade and make South Korea one of the world’s top seven economies. He calls this his “747” pledge, meant to evoke a soaring jumbo jet.

Lee says he would slash regulations, initiate tax reforms, streamline government and draw in more foreign investment. South Korea’s economy grew 4.9% last year and 5% the year before, but Lee says it has underperformed.

Though Lee has vowed to broadly continue Seoul’s policy of détente with the North, he says he will maintain a more critical eye. His liberal predecessors - Roh and Kim Dae-jung – gave unconditional aid and concessions as part of reconciliation efforts.

Lee says if leader Kim Jong Il abandons his nuclear programmes, the South will launch massive investment and aid projects in the impoverished North to increase its per capita income to £1,600 (€2,121).