Gamble Gone Bad Upends Trader Perception of Korea and Beyond
Live MintSouth Korea’s martial law decree was short-lived but the implications for global investors in the region may roll on for some time. “I don’t see confidence coming back immediately given the combination of the low liquidity season into year-end, and the risks that South Korea bears on potential contagion from Trump’s tariffs on China early in 2025.” Korean President Yoon Suk Yeol astonished the nation, lawmakers and investors by declaring military rule in a move he argued would stop the opposition from paralyzing his administration. “This looks like a political gamble gone wrong — I won’t be adding to Korea here in this uncertainty,” said Sat Duhra, a money manager at Janus Henderson Investors in Singapore. “We are concerned that these events could impact South Korea’s sovereign credit rating,” Min Joo Kang, a senior economist for South Korea and Japan at ING Bank in Seoul, wrote in a research note. “Political instability may rise even further.” Yoon’s actions are “rolling out the red carpet for Lee Jae-myung,” Oh said, referring to the main opposition leader who had ran against the president in 2022.
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