Dec. 10, 2024
South Korea's Ruling Party Stages Economic Coup: From Presidential Self-Coup to National Economic Collapse
Seoul, South Korea – South Korea is spiraling into economic chaos as President Yoon Suk-yeol’s controversial and illegal martial law declaration, coupled with allegations of a military rebellion orchestrated under his direct command, ignites unprecedented turmoil. The President’s shocking order to use lethal force against those opposing the martial law declaration has left the nation reeling, while the ruling People Power Party (PPP) clings desperately to power.
The PPP’s refusal to address this growing crisis—failing to participate in the impeachment vote and opting instead for a wait-and-see approach until early 2025—threatens to inflict catastrophic economic damage on the country. Experts warn that if the current situation persists for another two to three months, South Korea could face losses exceeding $150 billion.
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| Paratroopers of South Korean military are breaking in National Assembly main hall building while lawmakers are voting for dismiss the illegal martial law on 4 Dec. |
Economic Freefall: The Numbers
- Currency Crash: The Korean won has plummeted by over 20% against the U.S. dollar, marking its steepest drop in decades. This decline has triggered inflationary pressure on imported goods, worsening the cost-of-living crisis for ordinary citizens.
- Foreign Investment Exodus: A staggering $20 billion in foreign capital has exited South Korea in just one week, with an additional $50 billion outflow anticipated in the coming months unless political stability is restored.
- Stock Market Collapse: The KOSPI index has plunged by about 10% after the martial law, wiping out over $200 billion in market value. Major conglomerates such as Samsung and Hyundai are bearing the brunt of the investor panic, raising fears of mass layoffs and a broader economic downturn.
- Industrial Slowdown: Manufacturing output has contracted sharply, with key industries reporting projected losses of up to $25 billion in the next quarter as global supply chains steer clear of South Korea amid uncertainty.
A Political Gamble at National Expense
Despite holding only 108 of the 300 seats in the National Assembly, the PPP has obstructed impeachment efforts, prioritizing its political survival over the nation's well-being. President Yoon’s illegal actions, including the lethal suppression orders during the martial law declaration, have provoked outrage domestically and abroad.
By insisting on maintaining the current situation until February or March 2025, the PPP aims to avoid an early presidential election they are almost certain to lose. However, this calculated inaction is wreaking havoc on the economy and eroding South Korea’s international standing.
International Alarm
The U.S. government, a critical ally of South Korea, has expressed deep concern over the political and economic crisis. “South Korea is a cornerstone of stability in the region, but the current administration’s actions are undermining that role,” stated a senior White House official.
Global markets are watching nervously, with fears that South Korea’s turmoil could have a domino effect on the fragile post-pandemic economic recovery in Asia and beyond.
The Human Cost of Crisis
While political elites jockey for position, ordinary South Koreans are bearing the brunt of the fallout.
- Unemployment: Joblessness is expected to surge past 10% in early 2025, particularly in export-driven sectors like manufacturing.
- Small Business Devastation: With consumer confidence at rock bottom, thousands of small businesses are on the brink of collapse, with potential losses mounting into the tens of billions.
- Social Unrest: Protests are erupting nationwide, with citizens decrying the government’s actions as tyrannical and demanding immediate accountability.
“It feels like we’ve been abandoned,” said Han Min-jung, a factory worker in Busan who recently lost her job due to production cutbacks. “Our leaders are playing political games while we struggle to survive.”
A Call for Immediate Action
Opposition leaders, activists, and international observers are urging the PPP to prioritize the nation’s future over political expediency. “President Yoon’s illegal martial law and orders for lethal force have plunged South Korea into an economic and moral crisis,” said Kim Sung-ho, a prominent opposition figure. “If this government cannot act responsibly, it must step aside immediately.”
The clock is ticking. Every day of political paralysis brings South Korea closer to a point of no return, where the economic damage will be irreversible. The world is watching, and the stakes have never been higher.