LESS IMPACT THAN PREVIOUS IMPEACHMENT
In a new study, almost half of the 500 small business owners and self-employed people in the hospitality and food services sectors reported losses as a result of the uncertainty in the political climate.
The Korea Federation of Small and Medium Enterprises conducted the poll last year.
Some experts believe that the current political unrest may have a smaller impact on the economy than the one caused by Park Geun-hye’s impeacher in 2016.
” Although the market is unstable, we have experienced that it recovers when political volatility is resolved”, said Professor Jin Hyun-joung from Joongang University’s School of Economics.
” Compared to the former president Park Geun-hye’s impeachment period, the treatment seems to have been quicker this occasion, which suggests that consumers may have been less adversely impacted than they were then.”
He anticipates that the social uncertainty’s impact on the economy will ease as soon as next month, but he also anticipates that the gloomy development outlook will last a while.
Global supply chain problems, US-China business issues, rising prices and other factors were now causing the market to gain momentum, he pointed out.
Institutions like the Hyundai Research Institute and the OECD ( Organisation for Economic Co-operation and Development ) had been lowering growth forecasts for Korea before this ( declaration of martial law ), he continued.