US Forbes: "Yoon Proves Korea Discount Is Justified"

U.S. economic media Forbes reported that President Yoon Suk-yeol personally demonstrated the "Korea Discount" (undervaluation of the Korean stock market) through the recent emergency martial law situation.

News related to President Yoon Suk-yeol's declaration of martial law at Seoul Station on the 3rd. Photo by Yonhap News.

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On the 6th (local time), Forbes in the U.S. reported on the impact of the martial law situation on the Korean economy, stating, "The cost of President Yoon Suk-yeol's selfish martial law incident will be paid over time by 51 million citizens in installments."

Forbes emphasized, "President Yoon has shown that investors who argue for the 'Korea Discount' are right," adding, "This martial law incident reminded people of Korea's past military dictatorship era." It also noted, "It reinforced the perception that Korean companies are less prepared on the global stage," and predicted, "When investors think of martial law enforcers in Asia, they will now recall Indonesia, Myanmar, the Philippines, Thailand, and now Korea."

Furthermore, it explained, "While Deputy Prime Minister for Economy Choi Sang-mok's opinion that 'the impact of the martial law incident on the Korean economy is limited' may be correct, Korea, facing difficult situations such as China's economic slowdown and the U.S. regime change, is increasingly unlikely to respond appropriately to political paralysis caused by this martial law incident." It continued, "Even if President Yoon avoids impeachment, his legislative ability will be greatly limited," and added, "This administration will enter a forgotten realm beyond a lame-duck state."

Forbes stated, "This martial law increases the likelihood of pushing Korea into a 'lost decade' like Japan," and evaluated, "If President Yoon had used the past 941 days to strengthen competitiveness and create a fair competitive environment, Korea could have better coped with China's economic slowdown and the trade war initiated by then-President Trump."

Additionally, Forbes added, "President Yoon has not achieved notable results in resolving gender inequality, preventing the already world-low birthrate decline, or reducing the economy's excessive growth dependence on exports," calling it "a sufficiently bad situation to face a very uncertain next year."

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