Lawmakers must unite to defend the economy
Published: 10 Dec. 2024, 19:56
The shock waves from South Korea’s brief brush with martial law will deal a heavy toll on the economy. Unlike previous presidential impeachment motions against Roh Moo-hyun in 2004 and Park Geun-hye in 2016, the latest move to impeach President Yoon Suk Yeol will build risks “increasingly skewed to the downside,” Goldman Sachs said in its latest report. In 2004, the Korean economy was resilient thanks to the flourishing Chinese economy and in 2016, it was strong due to the chip boom. But Korea in 2025 faces “external headwinds from a Chinese slowdown and U.S. trade policy uncertainties.”
Once a poster child for pulling off democracy and industrialization at the same time, Korea is being ridiculed as a cautionary tale for revisiting authoritarian ways. Forbes warned that Korea’s 51 million people would have to pay for Yoon’s selfish martial law debacle in installments. Korea’s stellar credit rating, untouched for the past 10 years, could be reassessed if the political fallout in the martial-law aftermath persists, global rating agency Moody’s warned.
Government officials are ducking low to stay away from politics. According to a survey by the Federation of Korean Industries, about seven out of 10 large companies are undecided or plan no investments for next year, and that was taken before martial law. The Trumpian risks also are looming. In an interview with NBC, president-elect Donald Trump gloated how his strong tariffs on Korean washers during his first term created thousands of jobs in the United States.
Regardless of partisan differences, the legislature must be united in defending the economy. Democratic Party (DP) head Lee Jae-myung implied the majority opposition party could slash the government’s proposed budgetary outline by another 700 billion won ($489 million) on top of its earlier axing by 4.1 trillion won after its motion to impeach the president failed to go through.
The DP commanding 170 seats can easily pass bills. It must be extra careful about railroading the amendment on the Commercial Act that can further dampen business activities. The government and ruling party must do their best to persuade the DP. The budget bill should be based on bipartisan consensus to show Korea’s economic fundamentals are resilient from political upheaval.
Once a poster child for pulling off democracy and industrialization at the same time, Korea is being ridiculed as a cautionary tale for revisiting authoritarian ways. Forbes warned that Korea’s 51 million people would have to pay for Yoon’s selfish martial law debacle in installments. Korea’s stellar credit rating, untouched for the past 10 years, could be reassessed if the political fallout in the martial-law aftermath persists, global rating agency Moody’s warned.
Government officials are ducking low to stay away from politics. According to a survey by the Federation of Korean Industries, about seven out of 10 large companies are undecided or plan no investments for next year, and that was taken before martial law. The Trumpian risks also are looming. In an interview with NBC, president-elect Donald Trump gloated how his strong tariffs on Korean washers during his first term created thousands of jobs in the United States.
Regardless of partisan differences, the legislature must be united in defending the economy. Democratic Party (DP) head Lee Jae-myung implied the majority opposition party could slash the government’s proposed budgetary outline by another 700 billion won ($489 million) on top of its earlier axing by 4.1 trillion won after its motion to impeach the president failed to go through.
The DP commanding 170 seats can easily pass bills. It must be extra careful about railroading the amendment on the Commercial Act that can further dampen business activities. The government and ruling party must do their best to persuade the DP. The budget bill should be based on bipartisan consensus to show Korea’s economic fundamentals are resilient from political upheaval.
with the Korea JoongAng Daily
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