South Korea’s tourism and retail sectors are grappling with disruptions following the brief declaration of martial law by President Yoon Suk Yeol on December 3, which was quickly withdrawn. The political upheaval has prompted countries such as the United States, the United Kingdom, Japan, and Australia to issue travel advisories, urging citizens to exercise caution and avoid crowded areas.
This latest unrest has garnered more international attention than previous incidents, such as the 2016 protests surrounding the impeachment of former President Park Geun-hye. The tourism and retail industries are now closely monitoring the situation for any further developments. While retailers catering to international visitors have not seen an immediate impact on sales, they are concerned about potential future declines.
Seoul’s hotels have already felt the strain, with a rise in cancellations and requests for alternative accommodations, especially as December is a peak period for both corporate events and holiday festivities. South Korea’s largest airline, Korean Air, and major travel agency Hana Tour have also seen their stock prices dip by more than 5% amid the uncertainty. The South Korean won faced significant volatility, briefly surpassing 1,440 to the US dollar, its highest level since the global financial crisis of 2009, before stabilizing at 1,410 on December 6.
This political instability comes at a time when South Korea’s tourism industry was already struggling with slower growth in visitor numbers, particularly from China, and the ongoing challenge of unfavorable exchange rates. The situation remains fluid, with businesses and officials closely watching its impact on the economy.
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