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Political Turbulence Clouds South Korea’s Economic Outlook

South Korean President Yoon Suk Yeol’s short-lived declaration of martial law on December 3, 2024, and his subsequent impeachment on December 14 have plunged the country into its worst political crisis in nearly 40 years, with some signs of a negative economic impact. The economy was already showing signs of weakness before the December political crisis. The additional concerns about political instability have led some forecasters to downgrade their outlook for Korea in 2025.

10 Issues to Watch for on the Korean Peninsula in 2025

The year 2024 ended with South Korean President Yoon Suk Yeol’s declaration of martial law, his impeachment by the National Assembly, and the ensuing political turmoil and uncertainty. While 2025 will be largely defined by South Korean efforts to regain normalcy and stability in its domestic and global affairs, as well as the inauguration of the Donald Trump administration, other key issues will define and impact the Korean Peninsula this year.