South Korean President Yoon Suk-yeol's short-lived declaration of martial law may have economic and financial ripples, with a local economist cautioning that the fallout may affect investors' confidence and trade relations.
Yoon on early Wednesday lifted the martial law he imposed a few hours earlier, giving in to lawmakers rejection of military rule.
According to Yang Jun-sok, an associate professor of Economics at The Catholic University of Korea, the turmoil may have minimal impact on the country's real economy but could leave a mark on politically-sensitive sectors like finance.
"It ended up being more of a surprise [rather] than [bringing] any kind of a large effect on the real economy. So, on the production side, we shouldn't see that many problems. But for anything that deals with political uncertainty, the problem will probably persist for a long time," said the scholar.
Financial authorities in the country have been left scrambling to stabilize the markets during a time of political instability.
The government says it will provide ample liquidity to equity and foreign exchange markets, while the central bank says it's ready to mobilize a seven-billion-dollar stock market stabilization fund while loosening collateral rules to prevent a credit crunch.
An immediate crisis may have been averted, but the long-term impact on South Korea's economy and global standing remains uncertain. Investors and trade partners may now be more cautious, and businesses may call for stronger safeguards against political disruptions.
Local small businesses, already struggling with inflation and global economic challenges, are bracing for potential knock-on effects. The nation's largest labor union with roughly one million members are on indefinite strike, calling on President Yoon to step down from office. "It is now time to rally nationwide, both inside and outside the National Assembly, to demand the resignation of the Yoon Suk Yeol administration without wasting a single moment. Furthermore, it is time to gather collective national will to hold accountable and punish all forces that supported martial law and plotted insurrection," said Kim Jae-yeon, standing representative of the Progressive Party.
South Korea's economy has weathered political storms in the past, including a presidential impeachment in 2017.
"We had occasions where presidents had this type of problem before, most notably with the Park Geun-hye problem. So while we will have some negative impact from the martial law, it'll be on the areas that we more or less know about. To take a cliche, it'll be a 'known' risk rather than an unknown risk," said Yang.
With martial law now lifted, South Korea's policymakers face an uphill battle to provide reassurance and prevent long-term damage to the economy. It's a critical test for a country hoping to prove its economic resilience and stability to the world.
Political turmoil to leave impact on finance in ROK: expert
Chinese envoy on Wednesday expressed support for the United Nations Verification Mission in Colombia (UNVMC) to continue fulfilling its mandate, advancing the Colombian-led and Colombian-owned peace process, and providing vital assistance to Colombia in achieving peace and development.
Geng Shuang, China's deputy permanent representative to the UN, made the statement when speaking at a UN Security Council meeting on the Colombian situation at the UN headquarter.
UN secretary-general's special representative for Colombia and head of the UNVMC Carlos Ruiz Massieu said that Colombia had achieved some milestones as it celebrated the eighth anniversary of a landmark peace deal. However, violent incidents earlier this year resulted in dozens of deaths. He emphasized the need for Colombia to strengthen the government's presence in remote areas, as the peace agreement remains central to achieving lasting peace in the country. He called on the international community to continue its unwavering support for this process.
Geng expressed hope that in the new year, all parties in Colombia will remain steadfast, united, and committed to writing new chapters of peace, reconciliation, and progress. Geng put forward three key expectations: achieving new progress in improving the security situation, advancing dialogue and reconciliation, and making new achievements in implementing the peace agreement.
"We support the Colombian government's efforts to increase security deployment to effectively deter violent activities, stabilize the situation as quickly as possible, ensure the safety of people's lives, alleviate the local humanitarian crisis, and strengthen protection for former armed personnel, ethnic groups and vulnerable groups such as women and children," said Geng.
Geng noted that the current peace talks between the Colombian government and the National Liberation Army (ELN) have encountered setbacks. China hopes that both sides will resolve their differences through dialogue and resume negotiations at an early date, and expects that the Colombian government's peace talks with other armed groups will remain unaffected, he said.
China commends the Colombian government, under the leadership of President Gustavo Petro, for prioritizing the implementation of the peace agreement in its governance agenda and for its efforts in areas such as rural reform and the reintegration of former armed personnel into society, Geng said.
China also calls on UN agencies, as well as international and regional partners, to continue supporting Colombia in consolidating the achievements of the peace process, he said.
Recently, armed clashes have continued between Colombia's main anti-government armed group, the ELN, and former members of the Revolutionary Armed Forces of Colombia (FARC) in the Catatumbo region, northern Colombia.
According to data from the Colombian Ombudsman's Office, the conflict has displaced 36,000 people. Petro on Monday declared a state of internal commotion.
FARC, once Colombia's largest anti-government armed group, signed a peace agreement with the government in 2016, disarmed the following year, and transitioned into a political party.
However, some FARC members refused to disarm and formed splinter groups. The ELN primarily engages in drug trafficking and other criminal activities along Colombia's Pacific coast and border regions. On Friday, the Colombian government announced the suspension of peace talks with the ELN once again.
China reaffirms support for Colombia's peace process
China reaffirms support for Colombia's peace process
