"Impeachment is Economy"...Democrats Launch Fierce Attack on President Yoon's 'Korea Discount'

Democratic Party National Economic Advisory Council Statement
"Martial Law Shock and Impeachment Failure Will Lead to a Lost Decade"

On the 7th, the day of the vote on the impeachment motion against President Yoon Seok-yeol, citizens are urging the impeachment of President Yoon in front of the National Assembly in Yeouido, Seoul. Photo by Kang Jin-hyung

The Democratic Party of Korea called for the impeachment of President Yoon Seok-yeol, citing that the 12.3 martial law incident has further highlighted the Korea discount in global capital markets.

Hong Seong-guk, chairman of the National Economic Advisory Council of the Democratic Party of Korea, stated in a press release on the 8th, "Already struggling, the Korean economy has now gained new uncertainty due to the 12.3 martial law," adding, "Yoon Seok-yeol has branded the Korea discount as justified in global capital markets." This means that South Korea is being classified as a politically unstable country similar to some developing nations.

Chairman Hong referenced major international investment banks (IBs) that suggested "immediate implementation of adjustments to reduce exposure to Korean stocks" and warned that "political and economic uncertainties will cause foreign capital outflows and won depreciation," stating, "From an economic standpoint alone, Yoon Seok-yeol’s grounds for impeachment are stronger than those of Park Geun-hye."

Lee Jae-myung, leader of the Democratic Party of Korea, is presenting a certificate of appointment to Hong Seong-guk, chairman, at the inauguration ceremony of the National Economic Advisory Council held at the National Assembly on the 7th. Photo by Kim Hyun-min

He further stated, "Despite the fundamental weakening of the Korean economy over the past two and a half years, the Yoon Seok-yeol administration has focused only on short-term painkillers," diagnosing that "the number of jobs for people in their 60s has surpassed those in their prime working age of 40s, and manufacturing and youth jobs have continuously declined during the two years since the Yoon administration took office. Nevertheless, the administration has treated sound fiscal policy almost like a religion, which has ultimately failed."

He expressed concern that "the ‘martial law shock’ added to the Yoon administration’s lack of measures against the economic crisis, along with the People Power Party’s ‘failed impeachment’ atrocity, has increased the likelihood of pushing the Korean economy into a ‘lost decade.’ The longer the impeachment of Yoon Seok-yeol drags on, the greater the uncertainty will become, and this uncertainty will suffocate the Korean economy. Companies will further reduce already diminished investments, and investments in future growth engines will also dry up."

He continued, "The won-dollar exchange rate is already comparable to a wartime situation," and questioned, "Whether the Yoon administration can properly respond to urgent exchange rate fluctuations after even resorting to the Foreign Exchange Stabilization Fund to cover tax revenue shortfalls remains doubtful."

Chairman Hong warned, "Now is the golden time to urgently act for the Korean economy ahead of the launch of Trump’s second term," adding, "The mere fact that Yoon Seok-yeol is president is a recession and a Korea discount. If Yoon is not impeached, it will expose our country’s political backwardness to the world, which will ultimately set back economic development in the long term."