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

South Korea's economy barely grew in the fourth quarter of 2024, as the country's worst political crisis in decades hurts already weakened domestic demand and threatens to further sap growth in a year of rising external risks under a second Trump presidency.

South Korea’s economy continued to sputter last quarter, after President Yoon Suk Yeol’s short-lived declaration of martial law battered consumer confidence at a time when export growth is slowing.