In 2024, South Korea, the fourth-largest economy in Asia, recorded 2% growth. This slowdown follows a political crisis triggered by former President Yoon Suk Yeol's attempt to declare martial law. Last year, the Gross Domestic Product (GDP) grew by 1%, driven by a 4.1% increase in exports. The Korean Central Bank stated: 'Export growth, as well as private and public consumption, continued, while investment in the construction sector accelerated its decline.' South Korea is home to major semiconductor manufacturers like Samsung and SK Hynix, which produce essential equipment for artificial intelligence. Imports, meanwhile, rose by 3.8%. The central bank also added: 'Growth in the service sector strengthened, while the decline in the construction sector intensified and manufacturing growth slowed.' In the first quarter of 2025, GDP fell by 0.2% compared to the previous quarter amid the political crisis sparked by the martial law declaration and subsequent impeachment of the president. The economy later recovered, posting 0.7% growth in the second quarter and 1.3% in the third. Yesterday, the Korean Central Bank announced that in 2025, despite the political crisis the country faced, South Korea's economy achieved modest growth of 1%. This rate is the lowest since 2020, when the COVID-19 pandemic cast a heavy shadow over the economy.
