South Korea faced a severe political crisis beginning in December 2024, when President Yoon Suk-yeol declared martial law without constitutional procedures. The attempt failed as opposition parties and civil society mobilized quickly, enabling parliament to veto the declaration. On December 14, a two-thirds majority voted to impeach the president, suspending his powers and initiating judicial review.
The economy remains relatively strong. Investments in infrastructure and research support competitiveness in green technology and digital industries. A weak currency and low real interest rates have benefited exports, while domestic consumption has expanded. Social inequality is increasing, particularly due to high housing costs.
Governance is constrained by political fragmentation and escalating tensions with North Korea. South Korea depends on U.S. security guarantees and open markets, while strong antagonism between competing elite groups limits compromise and policy implementation.
