Bank of Korea flags downside risk to economic growth after martial law

SEOUL: South Korea’s central bank governor said on Wednesday there was downside risk to its forecasts for economic growth in 2024 and 2025, after impeached President Yoon Suk Yeol’s short-lived martial law declaration earlier this month.

There is a high possibility the economy will expand 2.1% this year, compared with 2.2% projected three weeks earlier, Bank of Korea Governor Rhee Chang-yong said, adding that the bank’s forecast of 1.9% for next year might also be lowered.

South Korean shares fall on caution ahead of central bank events

Rhee said the central bank intervened when the won weakened sharply after Yoon’s martial law attempt on Dec. 3 and that the bank would intervene again if volatility heightened in the foreign exchange market.