Korea's Economic Outlook for 2025: Slow Growth and Political Instability 1. Introduction In 2025, South Korea's economy faces slow growth and political instability , posing significant challenges for economic recovery and stability. Strategic policy responses are crucial to navigating these uncertain conditions. 2. Economic Growth Forecast Growth Slowdown: The Korea Development Institute (KDI) forecasts South Korea’s GDP growth rate to be 2.1% in 2025, a decrease compared to the previous year. Export Growth Deceleration: Although semiconductor exports are growing, the overall export expansion is expected to slow down. 3. Political Instability and Economic Impact Political Crisis: In early 2025, President Yoon Suk-yeol’s attempted martial law and subsequent impeachment have led to significant political turmoil, negatively impacting the economy. Decline in Consumer Confidence: Due to political instability, consumer confidence has weakened, adversely affec...