South Korea's New President Warns Pyongyang

South Korea's new president has been sworn in and has targeted the economy and relations with North Korea in her first speech.

In a two and a half hour ceremony, Park Geun-hye took the oath of office before 70,000 people.

Roughly fifty years after her father seized power in a military coup, Park Geun-Hye has taken control democratically.

As the nation's first female president, she returns to the presidential palace she knows well from her time living there as the daughter of a dictator.

“When I was just 22 years old I assumed the unprecedented duties as our country's acting first lady. That was because I had the responsibility to fill the void left by my mother's death at the hands of a North korean terrorist.”

Both her parents were assassinated but it was a confident, smiling Park who walked and waved to a cheering crowd and spoke of the challenge posed by North Korea's recent nuclear test - its largest and just two weeks ago.

“North Korea's recent nuclear test is a challenge to the survival and future of the Korean people, and there should be no mistake that the biggest victim will be none other than North Korea itself. I urge North Korea to abandon its nuclear ambitions without delay and embark on the path to peace and shared development.”

The President also said she wont tolerate any action that threatens the lives of the people and the security of the nation.

Analyst Dr Emma Campbell from the Australian National University believes President Park could be moving away from her campaign rhetoric of engagement with North Korea.

“And is putting a lot more emphasis on North Korea making or acting in particular ways before she will engage. So it worries me a little bit that she is going to continue the policy of the Lee Myung Back government rather than go forward with a policy of cooperation which is what she suggested in her initial campaigning and ideas during the election.”

Park Geun Hye has made Korea's slowing economy one of her first targets.

“One of my critical economic goals is to ensure that anyone that works hard can stand on their own two feet.”

Welfare is to be improved and small and medium enterprises are to be supported with policies to help them prosper alongside large companies.

The economy was at the top of the list of issues for voters during the election campaign.

Associate Professor Gil-Soo Han from Monash University says the uneven distribution of Korea's considerable wealth is creating social tensions.

“I think that is a major challenge. And there are many disgruntled voices from many different sectors and they actually feel quite deprived and they don't feel they are enjoying the outcomes of their hard work.”

Gil-Soo Han says the issues are complicated by the changing nature of Korea's aging society, with increasing immigration a challenge.

“And it is partly economic issues but it is also Korea is in the stage of being able to learn and to cope with a changing context in the world.”

President Park Geun Hye has won many supporters with her promise of a fairer Korea, one that rewards effort but also helps those in need.

At several times she has criticised the uncompetitive practices of the big conglomerates or Chaebols, which have stifled smaller firms and some say innovation as well.

It was those same companies -- with a lot of government help which transformed Korea from poverty to a manufacturing powerhouse.

Reining them in could be either too late, too difficult or counterproductive says Gil-Soo Han.

“On this matter the President is trying to polarise one way or the other, that is trying to control the conglomerates and then trying to offer more opportunties for smaller sized companies. I think that will cause a lot of problems. That is rather than let them utilise their own strengths, I think that is something that needs to be done and remains a challenge I think.”