South Korea’s economy is deteriorating, squeezed by political instability and a weakening currency. The won has lost over 12% of its value against the dollar in 2024, making it Asia’s worst-performing currency.

South Korea's central bank governor said on Thursday that the most important factor determining the health of Asia's fourth-largest economy in the next few months was whether recent political turmoil would stabilise.

South Korea’s central bank kept the interest rate unchanged at 3.0%, pausing a series of rate cuts that began last October. This decision comes despite growing concerns about heightened political uncertainties caused by the martial law crisis and sluggish domestic demand.

By bno - Taipei Bureau South Korea's central bank has opted to keep its benchmark interest rate unchanged at 3% despite mounting concerns over the country's economic performance. This decision follows two consecutive rate cuts in October and November,

South Korea's jobless rate jumped to the highest in 3-1/2 years in December, as political turmoil stoked economic uncertainty and dampened sentiment, data showed on Wednesday, a day ahead of the central bank's first monetary policy meeting of the year.