Political turmoil over impeached President Yoon Suk Yeol, who failed a martial law attempt in December, and sluggish domestic demand weighed on Asia’s fourth-largest economy.

By bno - Taipei Bureau South Korea's central bank has opted to keep its benchmark interest rate unchanged at 3% despite mounting concerns over the country's economic performance. This decision follows two consecutive rate cuts in October and November,

South Korea's economy barely grew in the fourth quarter of 2024, missing market expectations, as domestic demand was hurt in part by the country's worst political crisis in decades, raising bets for more fiscal and monetary support to revive growth.

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.