Inflation is easing nicely and, as a major exporter, the nation stood to benefit from an upswing in global growth. The American economy is outperforming, and China has taken some important steps to put a floor under its subpar expansion. Prosecutors charged the impeached Yoon with insurrection, Yonhap News reported, forcing him to remain in detention.
The finance minister currently heads the government. Unemployment jumped a full percentage point in December, which is a lot for an advanced industrial nation. It can hardly feel comforted that the tariff cudgel is being brandished for reasons that have little or nothing to do with trade.
Trump announced levies on Colombia before pulling the threat after reaching a deal on the return of deported migrants. Lower borrowing costs are important, but as Bank of Korea governor Rhee Chang-yong has indicated, they are hardly sufficient. Fiscal policy has a big role to play, if the political class can muster the will.
There are some encouraging signs:. The acting president has hinted at a supplementary budget and a holiday has been earmarked with the aim of boosting consumption. Exports were surging, economic growth was exceeding forecasts and manufacturers were churning out the semiconductors that drive modern electronics and artificial intelligence.
At a time when investment appeared increasingly ring-fenced along the lines of national security concerns, South Korea looked to be well positioned as a critical Washington ally. The continued wrangling is clearly hurting companies and consumers. But the country does need to move on from the Yoon saga.
