Political turmoil over impeached President Yoon Suk Yeol, who failed a martial law attempt in December, and sluggish domestic demand weighed on Asia’s fourth-largest economy.

By bno - Taipei Bureau South Korea's central bank has opted to keep its benchmark interest rate unchanged at 3% despite mounting concerns over the country's economic performance. This decision follows two consecutive rate cuts in October and November,

War, weak growth, and policy uncertainty around Trump’s return already threaten the Korean economy. An extended political crisis will make things worse.

Korea faces economic growth gap with U.S.; need for measures to retain investments Koreas investment landscape faces challenges amidst diverging economic trends with the U.S.

South Korea's acting President Choi Sang-mok said on Friday the government will make an all-out effort to stabilise the economy and will monitor financial markets around the clock to act if needed.

Despite mounting woes leading to weak growth momentum, South Korea's central bank kept its benchmark interest rate frozen Thursday in the wake of the weak local currency and uncertainties stemming from the new Donald Trump administration.

South Korea experienced presidential impeachments and a tragic plane crash. But the Kospi index is now higher than it was a month ago.

The high dollar and expensive U.S. stocks offer a chance to investors to buy cheap overseas assets as the risk of a bond market upset rises

The surprise decision came as South Korea's trade-dependent economy faces challenges from weakening export growth and a sluggish recovery in domestic demand, partly hindered by political turmoil following impeached President Yoon Suk Yeol's short-lived declaration of martial law in December.

A World Bank report last week highlighted that risks to the regional outlook remain tilted to the downside, primarily due to global policy shifts and trade policies in particular. It projected growth for East Asia and Pacific to decelerate to 4.6% in 2025 and to 4.1% in 2026, from 4.9% in 2024.

Asia’s fourth-largest economy is facing these problems as it navigates twin political shocks: Donald Trump’s re-election in the US and the fallout from South Korean President Yoon Suk Yeol’s failed attempt to impose martial law.

The Indonesian rupiah stayed near six-month lows on Thursday, while the South Korean won snapped a three-day winning streak after both countries' central banks shocked investors by eschewing widely anticipated interest rate calls.