Lee Teng-hui ascended to the presidency after the death of Chiang Ching-kuo, who passed away from cancer. Lee, previously the Vice President, was notably the first Taiwanese-born individual to lead the Republic of China since it relocated to Taiwan in 1949 following the Chinese civil war. His inauguration marked a turning point in Taiwanese politics, as it not only symbolized a changing of the guard but also reflected broader shifts in Taiwanese societal attitudes towards governance and identity. Under Lee's leadership, the political landscape began to evolve into a more democratic form, allowing for the gradual emergence of political pluralism in a society that had been predominantly governed under martial law.

Lee Teng-hui's presidency also coincided with significant global changes, including the end of the Cold War and a wave of democratization across East Asia. His tenure was characterized by the promotion of Taiwanese nationalism, advocating for a separate identity distinct from mainland China. This stance proved both popular among segments of the Taiwanese populace and contentious concerning cross-strait relations. Lee’s administration presided over several democratic reforms, including the 1991 decision to abolish the Temporary Provisions against the Communist Rebellion, which had been used to justify martial law, incorporating direct elections for Legislative Yuan members in 1992, and eventually leading to the first direct presidential elections in 1996.