Chaos at the helm: The economic stakes of Korea's political turmoil
Published: 22 Jan. 2025, 00:02

Suh Kyoung-ho
The author is an editorial writer of the JoongAng Ilbo.
In a recent CBS report, the private life of Donald Trump at his Mar-a-Lago resort following his election victory was described in chaotic terms. Trump reportedly juggled multiple cell phones to keep up with calls, leading to exhaustion so severe that he had to pause conversations with foreign leaders. Among the lengthy 2,600-word article, a mere 32 words about Korea stood out for their cutting nature: Trump joked to his daughter Ivanka, “Everyone says I’m chaotic — look at Korea,” suggesting Korea was in even greater disarray.
Trump’s unpredictability, akin to that of an unorthodox mixed martial artist, makes him difficult to anticipate. His joke may have drawn laughter at Mar-a-Lago, but for Koreans, it lands heavily. To be deemed more chaotic than Trump himself is a sobering indictment, and it’s hard to argue otherwise amid Korea’s own upheaval.
Yet, Trump demonstrates an unusual self-awareness — a trait absent in President Yoon Suk Yeol, who, surrounded by far-right YouTubers, appears disconnected from reality. While Trump deploys his "madman strategy" to gain leverage in negotiations, he is acutely aware of how others perceive him. This starkly contrasts with Yoon’s detachment from public sentiment and escalating domestic strife.
Watching international media coverage of Korea's political crisis evokes unease. Since late last month, the Korea Center for International Finance has been issuing daily reports summarizing global coverage of Korea. Initial reactions to the martial law declaration and impeachment saw praise for Korea's democratic resilience. However, concerns have since grown, particularly after acting President Han Duck-soo’s impeachment.
The Atlantic: “This crisis risks undoing progress Korea made with the West, leaving it unprepared for Trump’s return.”
Financial Times: “Korean diplomacy is paralyzed under Trump’s second term, placing its companies in a hostage-like situation.”
Eurasia Group: “Korea’s political narrative is growing increasingly erratic, signaling a peculiar and explosive crisis unlike anything in decades.”
CNBC: “Han’s impeachment shakes the foundations of Korea’s democratic success story.”
Bloomberg: “Political instability risks foreign capital flight and worsens corporate performance.”
Barron’s: “Far-right YouTubers fueling political chaos as they support President Yoon.”
The refusal of President Yoon to comply with an arrest warrant and his “residence sit-in” have only deepened uncertainty:
Oxford Analytica: “Prolonged political crises could further deteriorate Korea’s already downgraded economic growth prospects.”
Bloomberg: “Yoon’s defiance exacerbates national unrest.”
FT: “The president’s resistance is intensifying societal divisions.”
The arrest of a sitting president was, as Reuters put it, a "head-spinning" event for foreign observers. Subsequent reports highlighted escalating social conflict and polarization:
The Economist: “The nation is dangerously fractured.”
BBC: “Reflects intensifying internal polarization — not the end of a crisis but its beginning.”
New York Times: “Severe political fractures.”
The latest Economist issue labeled Korea’s saga as "K-drama," but it’s far from a compliment. The subsequent chaos at the Seoul Western District Court, where rioters disrupted the judiciary, transformed the narrative into a "makjang drama," a pejorative term for overly sensationalized soap operas. President Yoon bears significant responsibility for this, prioritizing appeasing “patriotic citizens” over safeguarding Korea’s global reputation.
Victor Cha of the Center for Strategic and International Studies (CSIS) advises that it is time to focus on stabilizing Korea to minimize political and economic fallout. Both ruling and opposition parties must refrain from obsessing over fluctuating approval ratings. Instead, they should swiftly agree on critical issues like the Semiconductor Act and supplementary budgets to demonstrate to domestic and international stakeholders that, despite political turmoil, Korea’s economy remains resilient. To put it bluntly, what good is winning power if the country is already in ruins?
Translated using generative AI and edited by Korea JoongAng Daily staff.
with the Korea JoongAng Daily
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