Analysis: South Korea martial law declaration increases economic risk

Immediate focus on the political impact of the declaration of martial law misses the substantial economic impact that will follow…

Event or Trend: On 3 December 2024, South Korean President Yoon Suk Yeol declared emergency martial law, citing threats from pro-North Korean elements and accusing the opposition of anti-state activities. At 1.00am, the National Assembly voted unanimously against the declaration.

Significance: The imposition of martial law in South Korea is a significant development with profound implications for the nation's political stability and economic health. Historically, such measures have led to widespread civil unrest and human rights abuses, as seen during the Gwangju Uprising in 1980. The current declaration has already sparked immediate opposition from political leaders and is likely to incite major protests. This escalation of domestic tension comes at a time when South Korea's economy is grappling with challenges, including youth unemployment, high household debt, increased concerns about the country's technological competitiveness, and concerns regarding the impact of Trump’s tariff cu…