▪ Downside risks jumped right after martial law was declared on Dec. 3, 2024.
▪ Before martial law, domestic demand was weakening while exports—especially chips—were strong.
▪ After martial law, private sector economic sentiment indicators contracted significantly, with real indicators declining with a lag.
▪ Immediately after martial law, financial and currency markets became more volatile due to Trump's tariff policies and domestic political uncertainty.
▪ Korea's economic growth rate in Q1 2025 recorded 0%.
▪ From Q2 2025, the economy improved as confidence recovered, chips entered a super-cycle, and stimulus spending began.
▪ Recently, financial markets calmed down as trade uncertainty eased and chips performed well, but currency markets saw bigger exchange rate swings.
▪ After martial law, the economy temporarily became more volatile and unstable but gradually steadied as confidence recovered and trade conditions improved.
▪ Before martial law, domestic demand was weakening while exports—especially chips—were strong.
▪ After martial law, private sector economic sentiment indicators contracted significantly, with real indicators declining with a lag.
▪ Immediately after martial law, financial and currency markets became more volatile due to Trump's tariff policies and domestic political uncertainty.
▪ Korea's economic growth rate in Q1 2025 recorded 0%.
▪ From Q2 2025, the economy improved as confidence recovered, chips entered a super-cycle, and stimulus spending began.
▪ Recently, financial markets calmed down as trade uncertainty eased and chips performed well, but currency markets saw bigger exchange rate swings.
▪ After martial law, the economy temporarily became more volatile and unstable but gradually steadied as confidence recovered and trade conditions improved.