The former mayor of Seoul, Lee Myung Bak of the opposition Grand National Party (GNP), has a strong lead over his two closest rivals ahead of South Korea's Dec. 19 presidential election, according to the latest polls. Lee is facing off against pro-government candidate and former Unification Minister Chung Dong Young of the United New Democratic Party and former GNP member and perennial presidential candidate Lee Hoi Chang, as well as nine other registered candidates. The key issue driving this election cycle is not foreign policy, but domestic economic management. Nearly 50 percent of voters put economic management as their top election concern, followed by employment and social welfare issues, according to a poll released in early December. The South's policies regarding North Korea ranked dead last. On near-term economic issues, the candidates differ on several key points. Lee Myung Bak, a manager for Hyundai group before his election to the National Assembly in 1992, supports looser regulations on South Korea's large conglomerate corporations and stricter controls on labor activities. Chung, by contrast, looks to investments in and economic cooperation with the North as a tool for economic growth and expansion, and plans to keep restrictions on the Chaebols, though he offers some regulatory changes to provide a friendlier business environment for foreign and domestic companies. But there are longer-term issues facing South Korea and the incoming president. On the domestic front, like many of its Asian neighbors, South Korea faces a graying population. As part of its efforts to deal with the problem, South Korea — unlike Japan — has welcomed a fairly large number of foreigners, though this is causing economic strains and affecting the country's long-held sense of ethnic singularity, situations that are leading to social pressures. The incoming president also faces a more immediate challenge — the disproportionate concentration of population in the greater Seoul area, which is resulting in housing shortages, high land prices and diminishing economic opportunities elsewhere in the country. This can perpetuate the strong regionalism that has long factored into the politics and development of South Korea. Regionalism also plays into the drive for political reform, which includes calls to alter the current presidential system to either allow multiple-term presidents or to shift to a prime ministerial system so as to ameliorate the lack of continuity in South Korean government and policies seen over the past 15 years. On international issues, the election comes amid a flurry of diplomatic and economic activity between the two Koreas, spurred by current South Korean President Roh Moo Hyun's October summit in Pyongyang with North Korean leader Kim Jong Il. But while there are distinct differences in rhetoric regarding North Korean policies, both Lee Myung Bak and Chung are leaning to a more centrist position. In regards to relations with the United States and the South's neighbors, all the candidates support continued defense and economic cooperation with Washington, increased economic and political ties with China, and keeping Japan at a distance. The positions are fairly similar to current policy, not because the candidates agree ideologically, but because conditions around South Korea are evolving and the country is adjusting to keep up. Economically, South Korea is increasingly reliant on — while at the same time competing with — China. Vietnam is drawing new investments away from less "friendly" destinations such as South Korea, while Japan remains a large, if lethargic, economic challenger. Strategically, China is becoming much more active regionally and internationally, while Japan is shifting to a stronger and more independent defense posture and preparing to exert itself economically and politically. The United States remains present but somewhat distant in the region, and Seoul again is finding itself not only in the uncomfortable position between a rising China and a rising Japan, but also is seeing building tensions in the South China Sea — the main shipping route for South Korea's energy imports — between China and Vietnam, China and Taiwan, and China and Japan. For South Korea, security comes from a combination of reduced tensions with the North, polite relations with the larger and nearer power (China) and the continued support of the outside power (the United States).