Korea’s economy headed nowhere fast under Yoon

TOKYO – The champagne isn’t exactly flowing as South Korea’s Yoon Suk Yeol commemorates the two-year mark of his presidency.

So far, Yoon’s government has no answers for a sliding Korean won that’s increasing inflation amid stagnant wages and near-record household debt.

Instead, Yoon’s Korea has assumed a Japan-like crouch in letting the central bank take the lead on boosting growth and curbing risks.

“The fact that net exports are a core driver of growth with the largest contribution will stay unchanged as inflation keeps putting pressure and real purchasing power among households remains insufficient,” says KB Securities economist Gweon Heejin.