If Lee Myung-bak did not exist, international politicians and bankers would dearly love to invent him. South Korea’s newly minted president – who secured the top seat on his 66th birthday on Wednesday – is everything his predecessor was not. The conservative party candidate promises closer links to Washington and a tougher approach to despotic Pyongyang. He pledges a more welcoming environment for foreign investors by cutting red tape, clamping down on labour unions and accelerating bank privatisation. Promoting economic growth is likewise high on his agenda.

All of this is welcome news for Asia’s third biggest economy. South Korea has lagged behind most of its neighbours in terms of growth this year, while the stock market has suffered the biggest net outflows of foreign funds. Several blots on the horizon remain. A global slowdown would curb exports – even though South Korea has diversified its export base. The country is sensitive to high oil prices, and inflation worries are starting to niggle. The domestic liquidity crunch, added to galloping loan growth, is something Mr Lee will have to tackle early on.