Diplomacy Journal Kim Tae Yeon | The Lee Jae-myung Government, launched in June 2025, is concluding its first year in office.

At the time of its inauguration, the diplomatic environment surrounding the Republic of Korea (south) was more complex than ever before.

Strategic competition between the United States and China intensified, centering on semiconductor and artificial intelligence (AI) supply chains, while President Donald Trump's re-election heralded a new diplomatic reality where even alliances are viewed as bargaining chips. Added to this were instability in the Middle East, the rapprochement between North Korea and Russia, and the restructuring of global supply chains, placing Korean diplomacy in the face of multi-layered challenges.

Amidst this environment, the Lee Jae-myung Government put forward "National Interest-centered Pragmatic Diplomacy" as its core diplomatic stance.

However, pragmatic diplomacy is not completed merely by declaration. The Ministry of Foreign Affairs is the entity responsible for designing and implementing foreign policy and securing the nation's strategic space. When evaluating the past year, the key point to focus on lies not in political slogans, but in the role the Ministry of Foreign Affairs played amidst the changing international order.

The Ministry of Foreign Affairs’ Strategic Response Amidst Structural Pressures in the International Order:
The current international order is being reshaped into a neorealist international political environment where competition among nations is intensifying. In particular, the second Trump administration is strengthening transactional diplomacy, utilizing tariffs and defense burden-sharing as leverage even with allies.

South Korea faces a structural dilemma: while it must maintain its alliance with the United States in terms of security, it is closely linked to China economically. Accordingly, the Ministry of Foreign Affairs pursued a strategic balance diplomacy centered on national interests rather than leaning toward bloc logic.

In particular, it conducted complex diplomacy that maintained a balance between alliances and economic cooperation while protecting the interests of Korean companies during the restructuring of supply chains for semiconductors, AI, and high-tech manufacturing. This went beyond mere diplomatic rhetoric and represented the practical implementation of economic security diplomacy directly linked to national survival.

Transforming the ROK-US Alliance into an Economic Security Asset:
One of the Ministry of Foreign Affairs' greatest achievements over the past year is the expansion of the ROK-US alliance from a relationship centered on military security to a framework of economic security cooperation.
While the Trump administration's intensified protectionism and tariff pressures acted as a burden on the Korean economy, the Ministry sought to transform this into an opportunity to leverage the strategic value of Korean industries, rather than limiting itself to a defensive response.

A representative example is the active highlighting of the competitiveness of the Korean shipbuilding industry during the preparations for the Gyeongju APEC Summit and key summit diplomacy, as well as the concretization of discussions on expanding cooperation in U.S. Navy MRO (Maintenance, Repair, and Overhaul) and shipbuilding industry collaboration.

This is evaluated as an achievement of pragmatic diplomacy that utilized the competitiveness of Korean industries as a negotiating asset, rather than passively responding to U.S. demands. The Ministry of Foreign Affairs presented a new diplomatic model that transforms security from a cost into a leverage for national competitiveness and industrial growth.

Global South Diplomacy: Pioneering a New Growth Axis:
Another characteristic of the Lee Jae-myung administration's diplomacy is a strategy of diplomatic diversification that is not biased toward any particular political camp. The Ministry of Foreign Affairs pragmatically managed relations with Japan while actively expanding cooperation with India, Vietnam, and ASEAN nations. This went beyond a mere expansion of diplomatic ties and was part of supply chain diplomacy aimed at securing future industrial competitiveness.

India is emerging as the world's most populous nation and a new hub for high-tech industries, while Vietnam is establishing itself as a key production base for Korean companies. Through strategic cooperation with these nations, the Ministry focused on enhancing the stability of supply chains for semiconductors, critical minerals, and high-tech manufacturing, as well as diversifying external risks for the Korean economy.
This is evaluated as a mid-to-long-term national strategy preparing for the "Post-China" era.

Proving Crisis Management Capabilities Amidst Middle East Crisis and Korean Peninsula Situation:
In 2025 and 2026, the international community faced new variables: the Middle East crisis and instability in energy security.

Amid escalating tensions in the Strait of Hormuz, the Ministry demonstrated its crisis management capabilities by focusing on protecting Korean nationals abroad and ensuring the safety of vessels. Furthermore, it played a core role in the national crisis management system by strengthening intelligence gathering and response frameworks utilizing diplomatic channels with major countries.

The Ministry of Foreign Affairs also played a crucial role in North Korea policy. Even as North Korea formalized the "two hostile states" relationship and intensified military cooperation with Russia, the Ministry maintained principles of peaceful coexistence and tension management rather than unconditional confrontation.

Although the environment makes it difficult to expect immediate results, the efforts to maintain diplomatic space are evaluated as a strategic investment in preparation for future changes in the situation on the Korean Peninsula.

The Era Where Diplomacy Drives the Economy:
While diplomacy was previously perceived as a domain of politics and security, today it has established itself as a core national strategy that determines economic and industrial competitiveness.

The roles of economic security diplomacy and trade diplomacy were also behind the growth trends shown by the shipbuilding, defense, nuclear power, and infrastructure industries over the past year. Expanded shipbuilding cooperation with the United States, support for global defense exports, and supply chain diversification strategies provided new growth engines for these related industries. Furthermore, actively promoting South Korea’s democratic resilience and national credibility through summit diplomacy with major nations has had a positive impact on restoring the confidence of foreign investors.

Ultimately, diplomacy is becoming an extension of economic policy that directly influences the national brand, investment environment, and corporate competitiveness.

The Key is the Sustainability of Pragmatic Diplomacy:
The polarization of domestic politics is cited as a factor weakening the continuity of foreign policy. Additionally, North Korea’s hardline stance and the deepening of cooperation between North Korea and Russia remain significant obstacles to realizing the Korean Peninsula peace initiative.

Nevertheless, the past year has demonstrated how actively the Ministry of Foreign Affairs can move to maximize national interests amidst a changing international order. The Ministry is expanding its role as a national strategic agency that encompasses economic security, supply chains, industrial competitiveness, the investment environment, and crisis management, extending beyond traditional diplomatic duties.

Ultimately, the diplomatic achievements of the first year since the launch of the Lee Jae-myung administration cannot be explained solely by the diplomatic events of specific leaders. Behind this lie the strategic judgment and execution capabilities of the Ministry of Foreign Affairs, which read the flow of changes in the international order and acted to maximize national interests.

In an era of growing uncertainty in international affairs, South Korea's competitiveness is not determined solely by military power or economic size. Diplomatic capabilities to safeguard national interests and create new opportunities, along with the role of the Ministry of Foreign Affairs in designing national strategies at the center of this process, are becoming more important than ever.