epoch game South Korea’s central bank slashes forecasts over political crisis

A policeman walks in front of the Seoul Western District Court in Seoul on January 20, 2025, after supporters of South Korean President Yoon Suk Yeol stormed the building on January 19 after a judge extended the impeached leader’s detention over his ill-fated attempt to impose martial law. (Photo by Jung Yeon-je / AFP)

Seoul, South Korea — South Korea’s central bank said Monday it had slashed its 2025 growth forecast because of the political crisis triggered by President Yoon Suk Yeol’s declaration of martial law last month.

Yoon briefly suspended civilian rule on December 3, sending soldiers to parliament but lawmakers voted the measure down and later impeached the president, who is now being held for a criminal probe on insurrection charges.

Article continues after this advertisement

He initially resisted arrest and has refused to cooperate with investigators and, when his detention was extended, his die-hard supporters attacked a court building on Sunday.

FEATURED STORIES BUSINESS BIZ BUZZ: Megawide building new infra pipeline BUSINESS Finland seeks to entice more skilled Filipino workers BUSINESS Recto: Gov’t might have missed 2024 growth target

READ: Impeached South Korea president formally arrested over martial law bid

“The unexpected declaration of martial law in early December, coupled with the ongoing political turmoil and the Jeju Air passenger plane disaster, significantly dampened economic sentiment,” the Bank of Korea said in a statement.

Article continues after this advertisement

A Jeju Air Boeing 737-800 crashed on December 29 in southwestern Muan airport, killing 179 people in the worst ever aviation disaster on South Korean soil.

Article continues after this advertisement

The political turmoil and crash “led to contractions in domestic consumption and construction investment, likely causing the fourth-quarter growth rate to fall well below the November projection”, the bank said.

Article continues after this advertisement

“Consumption, which had shown improvement in the third quarter, appeared to weaken again in the fourth quarter,” it said.

As a result, the bank’s Monetary Policy Committee revised down its estimate for the last quarter of 2024, from 2.2 percent to a range of 2.0-2.1 percent.

Article continues after this advertisement

It had projected 1.9 percent growth for 2025, but “the forecast has been revised downward to 1.6-1.7 percent”, it said.

“This adjustment is primarily attributed to the impact of political uncertainty triggered by the declaration of martial law last December, which has dampened economic sentiment,” it said.

“This is estimated to reduce this year’s growth rate by approximately 0.2 percentage points, particularly affecting domestic consumption and other areas of domestic demand,” it added.

Yoon is the first sitting South Korean president ever to be arrested.

With Yoon behind bars, prosecutors are due to formalise a criminal indictment for insurrection.

The federal and state governments’ tax revenue reached a total of 86.2 billion euros ($93.54 billion) last month, according to the ministry’s monthly report.

Gorman will become chairman on Jan. 2, 2025. He will succeed Mark Parker, who is leaving after serving on Disney’s board for nine years.

He could be jailed for life or executed if found guilty.

Yoon refused to attend questioning Monday, his lawyers said, with the Corruption Investigation Office — the body in charge of the probe — saying it was looking at whether to compel him to attend.

Yoon has also been absent from the parallel probe at the Constitutional Court, which is considering whether to uphold his impeachment.

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

If that court rules against himepoch game, Yoon will formally lose the presidency and elections will be called within 60 days.

free slots com READ NEXT South Korea unveils huge export finance support, citing Trump ... Marcos urges Tesla to manufacture electric vehicles in PH EDITORS' PICK Kanlaon posts 3 ash emissions, 13 volcanic quakes On-air apology issued to Djokovic over ‘insulting’ comments Pacquiao Int’l Hall of Fame awaits, supports Senate, 1-Pacman return to Congress Chavit Singson retires after withdrawing Senate bid for health reasons Fil-Am leader postpones oath of office to focus on LA fire relief efforts 20 most popular TV shows to stream right now: ‘Squid Game,’ ‘Shogun’ and more MOST READ Sandigan finds former Quezon City mayor Herbert Bautista guilty of graft Chavit Singson retires after withdrawing Senate bid for health reasons Darryl Yap bares Pepsi Paloma's close bond with Charito Solis Chinese engineer, 2 Filipinos nabbed for espionage targeting PH security Follow @FMangosingINQ on Twitter --> View comments