Political Turmoil Adds to the Economic Woes of South Korea

Published On Dec 6, 2024, 12:13 AM

South Korea's economy is facing significant challenges amidst political instability, especially following President Yoon Suk Yeol's brief declaration of martial law. This situation is exacerbated by slowing growth, a struggling stock market, and weak currency performance compared to major Asian counterparts. Recent interest rate cuts by the central bank signal increasing concerns over economic stability. Firms are particularly worried about export dynamics due to potential trade tariffs under the new U.S. administration. Overall, investor confidence has been shaken, reflected in stock and currency volatility, although government officials are actively trying to stabilize the situation.