By Jonathan Thatcher
SEOUL (Reuters) - South Korea's new president takes officenext week, pledging to use the skills honed during his days asa leading businessman to lift the economy into the world's topseven.
But the ambitious campaign promises that helped LeeMyung-bak to a landslide win in December's election, and endeda decade of liberal rule, face major challenges from a slowingglobal economy and ferocious competition from powerfulneighbours.
The former construction company CEO will be inaugurated onFebruary 25 in front of an audience including Japanese PrimeMinister Yasuo Fukuda and U.S. Secretary of State CondoleezzaRice.
Lee's victory was never really in doubt, attributed inlarge part by analysts to widespread disillusion among voterswith the outgoing liberal government of Roh Moo-hyun, who wasseen as a lacklustre leader of the world's number 13 economy.
The incoming president has also vowed to be tougher thanhis predecessor with North Korea if it continues to resistinternational pressure to dismantle its nuclear threat, but toreward it handsomely if it complies.
"I will repay you by exerting all my efforts in sincerelycaring for you and reinvigorating the economy," a relieved Leewas quoted this week as saying after investigators cleared him-- for the second time -- of fraud allegations.
Lee, 66, moved to politics after a prominent career as aCEO of the construction arm of the giant Hyundai conglomerate.
A stint as mayor of Seoul -- which with its satellitecities is home to half South Korea's population -- won him areputation as a go-getting leader able to push through bigprojects on time.
"His hobby is work," said one academic who works in the Leecamp.
RAGS-TO-RICHES
A father-of-four, Lee's rags-to-riches life story wasfeatured in two hit TV dramas about business heroes who raisedthe country out of the ashes of the 1950-53 Korean War.
He is committed to dismantling the bureaucracy that bigbusiness groups say is throttling them and to making it easierfor foreign investors to try their luck in South Korea.
"We hope the new government will move away from aregulator's approach to a business-friendly stance," said anexecutive at one of South Korea's leading conglomerates, orchaebol.
"In the end, we are in a country that makes its living withexports and chaebol are the main exporters."
Big business argues it has been penalised by the outgoinggovernment's focus on trying to raise up society's have-nots,many still trying to pull themselves out of the hole left bythe financial crisis that swept through much of Asia 10 yearsago.
Lee has had a bumpy ride since winning the election,clashing early on with one of the main labour unions andteacher groups.
He has also had settle for a compromise over his proposedcabinet after a fierce challenge from liberal MPs who stilldominate parliament.
That is a situation Lee hopes will change in the Aprilparliamentary election, when his conservative party is tippedto win a majority that will give him the political muscle topush through new policy.
While many in the business sector hope the radical changespromised by Lee will make their life easy, economists warn thatthe global economic slippage will make it much harder to reachthe high growth targets he is offering.
And one analyst said Lee may need to soften his hard-nosedapproach and not try to railroad through his policy changes,noting that latest opinion polls show his approval rating wellbelow recent predecessors just before they took office.
"The problem is, the incoming government is focusing toomuch on results, speed and performance," said Hahm Sung Deuk ofthe Korea University Department of Public Administration.
"Of course speed is important, but the most important thingis democratic procedures and values. The people may have put anemphasis on the economy during the election but that does notmean you can disregard political values."
(Additional reporting by Rhee So-eui and Lee Jiyeon;Editing by Keiron Henderson and Alex Richardson)
