South Korea to elect new president The candidates, Moon Jae-in and Park Geun-hye are in a race to be South Korea's next president. South Koreans will elect a new president Wednesday Park Geun-hye and Moon Jae-in, vying to lead nation that is strategic Western ally Biggest concern for many South Koreans is the economy Seoul, South Korea (CNN) -- Amid frigid temperatures, South Koreans headed to the polls to elect a new president in a nation increasingly anxious about its economy. Voters will choose between a conservative and a liberal candidate, who will lead the fourth largest economy in Asia and a strategic Western ally. Voting began at 6 a.m. local time. Park Geun-hye, the 60-year-old candidate of the conservative Saenuri party, could become the first female president of South Korea. She faces a stiff challenge from Moon Jae-in, the 59-year-old left-leaning candidate of the Democratic United Party, who has steadily gained support. Park has an edge in the polls, although the race has narrowed. The winner of Wednesday's race will assume office in February 2013, in a country grappling with income inequality, angst over education and employment prospects for its youth, and strained relations with Pyongyang. "I hope the next president can put what the people want and how the country can develop before the interests of their own party," said Yong Sung-hwa, who voted in the morning. Like many other elections around the world, the economy is the number one issue for South Korean voters. Though the Asian country has fared far better than other countries, including the United States, during the economic crisis, its export-led economy has still felt the pinch. "This country depends on the world's economy," said Jong Kun Choi, associate professor in the department of political science and international studies at Yonsei University in Seoul. Eighty-nine percent of our GDP comes from the international trade. The election could shape into a showdown of generations. Park enjoys broad support from the older Koreans in their 50s and 60s, while Moon has strong support from younger Koreans. The voter turnout is expected to be around 70%, according to South Korea's Yonhap news agency. In a survey conducted by the National Election Commission, 80% of the respondents said they would vote Wednesday. Lee Myung-bak, the current president is not running for re-election, as it is prohibited by Korea's constitution. He will leave office next year dogged by low approval ratings, an impasse with North Korea, and corruption scandals involving his family and inner circle. The Korean presidency has not enjoyed a sterling reputation. Park and Moon also bring baggage from the past. Park is the daughter of former president Park Chung-hee, whose legacy has left the Korean public divided. Some claim he was a dictator who ignored human rights and cracked down on dissent, while others credit him with bringing South Korea to economic development. Her father's assassination in 1979 ended 16 years of rule. Moon is a former human rights activist who was imprisoned in the 1970s for protesting against Park's father's regime. He is also a former Special Forces commando and hold a black belt in judo. Like Park, he carries divisive associations with the past. He was chief of staff for the late President Roh Moo-hyun, who was in office from 2003 to 2008. Roh committed suicide in 2009 amid an investigation into a bribery scandal. Throughout the campaign, Moon has portrayed himself as the down-to-earth choice, calling for welfare reform and economic democracy. Both candidates pledge reforms including engagement with North Korea, reining in the country's big conglomerates -- like Samsung and Hyundai -- support for small and medium-sized businesses and more social spending, although their proposed methods differ. "I'm concerned about homeland security, foreign policy and the economy," said Lee Dong-hoon, a voter who cast his ballot. Among those, the economy is the most important. We need to raise the number of the middle class. This comes at a time of sluggish growth and increasing poverty. In October, the Bank of Korea, the nation's central bank lowered its growth forecast for next year to 2.4% from its previous prediction of 3%. From 2006, the number of residents living in relative poverty has jumped 10%. Almost one-fifth of the population earns less than half the national average income, according to Statistics Korea, a government agency. Nowhere in the country is the gap between rich and poor more stark than Guryong village, part of the exclusive Gangnam district of Seoul, made famous by the viral "Gangnam Style" song by rapper Psy. Lee Ha-soong, 80, has lived in the neighborhood for 30 years. Her home is a patchwork of wood and corrugated iron, sandwiched between other improvised cabins. In heavy rain or snow, she is forced to stay with neighbors as her five-meter square home floods. After seeing presidents come and go, Lee is unimpressed by their promises. "Every election and every Christmas, politicians come and ask me, "How are you grandma? How can we help? It's always the same questions. I tell them, "If you can't change anything, why are you asking such useless questions?" Despite plans to raze the shacks and build low-income apartments for these residents, Lee is unconvinced of change. Less than a kilometer away from her shack, high-rise apartments stretch into the sky. The cheapest apartment in these buildings is a cool $1.2 million in an area known as the Beverly Hills of Seoul.