Political issues have had a bad impact on Korea’s export sector

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• Markets: Hanwha Aerospace has significantly increased in the year 2024, but last month saw a drop of nearly 30%

Economy 📰

Political issues have had a bad impact on Korea’s export sector

South Korea's growing political instability, stemming from President Yoon Suk Yeol's failed martial law declaration, poses a significant challenge to export growth in early 2025. The leadership vacuum is disrupting diplomatic and business exchanges crucial for the nation’s trade-reliant economy, where trade accounts for over 70% of GDP.

In November, exports totaled $12.5 billion, marking a modest 1.4% year-on-year increase. However, this growth was mainly due to semiconductor exports, while key sectors like automobiles and secondary batteries experienced sharp declines of 13.6% and 26.3%, respectively, with the latter hit hardest. Strikes at major carmakers like Hyundai Motor and Kia further contributed to the slump in automotive exports.

Experts warn that political uncertainty may continue to hinder export momentum. Professor Kim Dae-jong of Sejong University emphasized the need for swift resolution of the political crisis to stabilize the economy and revive government-level exchanges essential for sustained trade growth. He noted that the martial law fiasco could negatively impact Korea's sovereign credit rating, causing further economic shocks in the short term.

Industry representatives share a bleak outlook, citing unionized workers’ threats of strikes as an additional risk to exports. Hyundai Motor’s 44,000-member union, the largest of its kind, has warned of walkouts, which could disrupt production and harm export growth at a critical time, especially amid uncertainties surrounding U.S. President-elect Donald Trump’s administration.

Business lobbies have urged unions to refrain from strikes to avoid exacerbating the crisis, as such actions could further undermine the nation’s fragile export momentum.

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Important

Hyundai Motor Group accelerates a generational transition by appointing younger executives.

Hyundai Motor Group has conducted its year-end executive reshuffle, emphasizing the promotion of younger officials under a merit-based system, the company announced Tuesday.

This initiative aligns with the group's efforts to drive a generational transition, aiming to proactively identify next-generation growth opportunities and foster innovation amid the ongoing transformation in mobility.

Executives in their 40s now make up 41% of the total executive pool, a significant rise from 21% in 2020. This year, 239 executives from key affiliates, including Hyundai Motor, Kia, and Hyundai Mobis, were promoted based on their contributions.

Lee Seung-jo, Hyundai Motor’s chief financial officer, was elevated to executive vice president for his role in shaping the group’s medium- to long-term growth strategy and achieving financial targets this year.

“We focused on enhancing leadership and organizational efficiency in response to growing global uncertainties expected next year,” a Hyundai Motor Group spokesperson said. “We will boldly promote young executives capable of driving innovation and future business transformation.”

Koo Za-yong, previously a senior president at Hyundai Motor, was promoted to executive vice president for his role in successfully leading the company’s IPO in the Indian stock market. Similarly, Lee Tae-hoon, who managed Kia’s global business operations, became an executive vice president for his strategic adaptability to fluctuating global automotive demand.

Notably, Song Hyun from Hyundai Motor’s interior design group and Joo Si-hyun, formerly a senior research engineer specializing in robot intelligence software, were both promoted to vice president at the age of 42, making them among the youngest executives in this reshuffle.

The company has also underscored its commitment to advancing research and technology to lead the eco-friendly mobility era. Executives involved in battery development, hydrogen energy, and electrification research were promoted for their contributions to future mobility solutions.

Additionally, Hyundai Motor Group increased the number of female executives, promoting 11 women this year compared to four in 2023.

Entertainment

Can the second season of Squid Game enhance the role of social critique in Korean content?

The 2021 Netflix survival thriller Squid Game became a global sensation, telling the story of 456 participants competing in deadly games for a prize of 45.6 billion won ($32 million).

While its unique narrative, inspired by Korean children's games, captivated international audiences, its bold exploration of social issues, particularly wealth disparity and societal inequality, was equally instrumental in its worldwide acclaim.

Ironically, as the second season of Squid Game was unveiled during a press event on Monday, Korea was engulfed in political chaos following the Dec. 3 martial law incident. Although the National Assembly swiftly rejected the enforcement within hours, the situation has left Korea, often viewed as a beacon of peaceful democracy in Asia, in political disarray.

International media have expressed shock over the crisis, noting the contrast between Korea's growing global cultural influence—fueled by the success of K-pop, K-dramas, and K-movies—and its internal political struggles.

Despite the turmoil, doubts linger over whether this political emergency could diminish the impact of Korean content, which is celebrated for its creativity and universal themes. However, this writer believes K-content, as seen in Squid Game, has the unique ability to spotlight political and social issues, potentially driving societal change.

The first season of Squid Game gained global recognition for its honest depiction of Korean societal flaws, sparking meaningful discussions. Similarly, works like Netflix’s The Glory (2022), addressing school violence, and the Oscar-winning film Parasite (2019), exploring wealth disparity, have used negative aspects of Korean society to raise awareness and inspire change.

Hwang Dong-hyuk, the creator of Squid Game, acknowledged the challenge of promoting Season 2 amid Korea’s political crisis but noted that the new season would reflect societal and cultural issues similar to those faced today. He emphasized that the themes explored are not unique to Korea but resonate globally.

While K-content’s success stems from its striking production and innovative storytelling, its core strength lies in its candid engagement with social issues, fostering empathy and solidarity among audiences worldwide.

Set to premiere on Dec. 26, Squid Game Season 2 is expected to go beyond merely highlighting societal issues, aiming to convey messages of unity and progress. In doing so, it will underscore the transformative power of cultural content.

Living in Korea

What is the time to get a salary in Korea?

I don’t know what happens in other parts of the world, but in Korea, especially in the chain restaurants or department stores give a salary 10th. The reason I don’t know but they do!

As a student, the end of the month is very tough, you know the feeling! ha ha ha.

It’s painful and sometimes it hurts us, right? So, be efficient in learning how to manage money!

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