Choi Sang-mok: "Martial Law Situation Has Very Limited Impact on Korean Economy and Market"

Bloomberg Interview
Dismissing Recession Concerns as "Excessive"

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok stated that the impact of President Yoon Seok-yeol's declaration and lifting of martial law on the South Korean economy and market is "very limited." He also dismissed concerns from some quarters that South Korea will fall into a recession next year as "excessive."

On the 5th (local time), Deputy Prime Minister Choi said in an interview with Bloomberg News, "The recent emergency martial law measures were swiftly lifted in accordance with the Constitution and laws, so I believe the impact on the market is very limited."

He emphasized again, "Foreign investment in South Korea is influenced by the fundamentals of the national economy," adding, "The market system is functioning well, so the impact of non-economic situations on the South Korean economy has been very limited and well managed."

He also reaffirmed the government's policy to take swift action if financial market volatility expands. Earlier, on the 4th, Deputy Prime Minister Choi announced that to respond to market instability caused by the martial law situation, unlimited liquidity supply and all available financial and foreign exchange market stabilization measures would be mobilized.

Regarding concerns about a recession in South Korea, Deputy Prime Minister Choi drew a clear line, calling them "excessive." According to a survey conducted by Bloomberg after the martial law incident, 33% of economists estimated the probability of South Korea entering a recession within one year at 33%.

Deputy Prime Minister Choi dismissed such concerns and cited forecasts from the International Monetary Fund (IMF) and the Bank of Korea, stating that South Korea's economic growth rate next year will be at the potential growth rate level (2.0%). Previously, the IMF projected a 2.0% growth rate, and the Bank of Korea forecasted 1.9%.

He emphasized, "The South Korean government is expanding efforts to strengthen the fundamentals of the economy," adding, "I believe this is the way to encourage foreign investors to invest more in South Korea."