The curtain fell on the Republic of Korea's presidential election on Thursday, heralding a transfer of power in the world's 10th largest economy, with Yoon Suk-yeol of the main conservative opposition People Power Party narrowly defeating his liberal rival Lee Jae-myung of the ruling Democratic Party of Korea in a closely contested election.

While trying to unite the country and address domestic issues, the ROK president-elect will also have to navigate his way amid the increasingly complicated regional situation and broader international environment. Due to the gravity of the nuclear issue on the Korean Peninsula, Yoon's stance toward the ROK's northern neighbor will have a far-reaching impact on peace and stability on the peninsula. Yoon has already adopted a tougher line toward Pyongyang than the current president but has indicated he will leave the door to dialogue open.

The outgoing ROK government under President Moon Jae-in by and large followed a path of engagement with Pyongyang and brokered denuclearization talks between Pyongyang and Washington. While Yoon, in his first comments as president-elect, said that he will "sternly deal with the North's illegal and irrational acts".

His campaign claim that the leader of the Democratic People's Republic of Korea was a "rude boy" who needed to be taught some manners may have played well with voters disillusioned with the current administration. But it will be his willingness to keep the door to dialogue open that will help him fulfill his domestic agenda. He needs to keep in mind that peaceful inter-Korea relations are crucial for the ROK's own development too.

China hopes the incoming ROK leader will strive to improve ties with the DPRK and other neighbors rather than harming them. Given that this year marks the 30th anniversary of the establishment of diplomatic ties between China and the ROK, the two neighbors have a good opportunity to inject new vitality into their relations.

As State Councilor and Foreign Minister Wang Yi pointed out this week, China and the ROK are "not adversaries, but partners with converging interests". They have a lot to offer each other as they have much untapped cooperation potential.

But to tap that potential, the new ROK government will need to carefully balance its relations between China and the United States.

Yoon spoke to US President Joe Biden early on Thursday, vowing to maintain "close coordination" on the DPRK. With the US cajoling allies into jumping on board its anti-China bandwagon, Yoon will soon be tested on whether he has the political wisdom to keep the trajectory of relations with China free from the influence of the ROK's alliance with the US.