South Korea's Political Turmoil Shakes Economic Stability

South Korea's central bank governor, Rhee Chang-yong, highlights political stability as key to economic health amid recent turmoil. The Bank of Korea kept interest rates steady amid instability surrounding President Yoon Suk Yeol's martial law attempt. Yoon's arrest has influenced the currency markets, highlighting ongoing challenges.

South Korea's economic future is now closely tied to political stability, according to Bank of Korea Governor Rhee Chang-yong. Rhee underscored the paramount importance of steady governance over interest rate adjustments following recent political upheaval.

The Bank of Korea opted to maintain interest rates at 3.00%, a decision unexpected by many, amid the tumultuous political landscape initiated by President Yoon Suk Yeol's martial law attempt. The crisis led to a revision of the country's economic growth forecast for 2025, trimming it down to 1.8%.

The arrest of President Yoon, South Korea's first sitting president to be detained, appears to have temporarily bolstered the won currency, which was under pressure. However, Yoon continues to resist further questioning, leaving South Korea in a state of political uncertainty.

(With inputs from agencies.)