Choi Sang-mok: "Limited Economic Impact of Martial Law... Recession Concerns Overstated"

Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, stated that the economic impact of the declaration and lifting of martial law in South Korea is limited and that concerns about entering a recession are overstated.

In an interview with Bloomberg on the 5th (local time), Deputy Prime Minister Choi expressed this view, adding, "The growth forecasts for next year by international organizations, including the International Monetary Fund (IMF), and the Bank of Korea are slightly lower than this year but are at or near the potential growth rate level."

He also mentioned, "Since the martial law measures were swiftly lifted in accordance with the constitution and laws, I believe the impact on the market was very limited."

Deputy Prime Minister Choi stated, "The market is functioning well, and as a result, it is finding stability," adding, "Even if uncertainties increase in the future, guidelines related to the market will operate, and we will be able to respond well." He further stated, "If volatility expands in the short term, the Bank of Korea and financial authorities will jointly supply liquidity to the market without limit."

Regarding foreign investors in Korea, he analyzed, "When considering past cases, investment sentiment is influenced more by the fundamentals of the Korean economy than by external factors," and judged that the impact of the martial law declaration and lifting was limited.

He also mentioned, "Since the martial law measures were swiftly lifted in accordance with the constitution and laws, I believe the impact on the market was very limited."

Kim So-yeon, Hankyung.com journalist sue123@hankyung.com