South Korea elected its first woman president Wednesday, with voters handing a slim but historic victory to conservative candidate Park Geun-Hye, 60, daughter of the country’s former military ruler.

South Korea elected its first woman president Wednesday, with voters handing a slim but historic victory to conservative candidate Park Geun-Hye, 60, daughter of the country's former military ruler.

With more than 90 percent of the national vote counted, Park from the ruling New Frontier Party had an insurmountable lead of 51.6 percent to 48 percent over her liberal rival, Moon Jae-In of the main opposition party.

The election was largely fought on domestic economic issues, with both candidates offering similar policies as they went in search of centrist voters beyond their traditional bases.

Park had pushed a message of "economic democratization" - a campaign buzzword about reducing the social disparities thrown up by rapid economic development - and promised to create new jobs and increase welfare spending.

“This election was a victory for all of you, the people," Park told cheering, flag-waving supporters at an open-air victory celebration in central Seoul.

"It is a victory from the heart of the people hoping to revive the economy," she added.

On North Korea, Park has promised a dual policy of greater engagement and "robust deterrence", and held out the prospect of a summit with North's leader Kim Jong-Un, who came to power a year ago.

She also signaled a willingness to resume the humanitarian aid to Pyongyang suspended by current President Lee Myung-Bak.