South Korea's economy barely grew in the fourth quarter of 2024, as the country's worst political crisis in decades hurts already weakened domestic demand and threatens to further sap growth in a year of rising external risks under a second Trump presidency.

South Korea’s economy is deteriorating, squeezed by political instability and a weakening currency. The won has lost over 12% of its value against the dollar in 2024, making it Asia’s worst-performing currency.

Political turmoil over impeached President Yoon Suk Yeol, who failed a martial law attempt in December, and sluggish domestic demand weighed on Asia’s fourth-largest economy.