South Korea’s political turmoil casts shadow over Asean trade and investment

THE lifting of martial law in South Korea has done little to quell political turmoil, with an impeachment motion against President Yoon Suk Yeol adding to concerns about potential disruptions in trade and investment flows between South Korea and Asean.

While South Korea’s foreign direct investment (FDI) into Asean is expected to remain stable, experts warn that the uncertainty surrounding South Korea’s political landscape could temporarily impact investor confidence, particularly in strategic sectors such as chips, batteries and transportation.

South Korea is the Association of Southeast Asian Nations’ fifth-largest trade partner, while the bloc is South Korea’s second-largest trade partner after China.