South Korea's Economic Growth After the 1979 Military Emergency

South Korean President Yoon Suk-yeol unexpectedly declared a state of martial law on Tuesday evening, December 3, 2024, after almost 45 years.

According to *Katadata*, Yoon Suk-yeol cited anti-national forces and threats from North Korea as the reasons behind the decision, announcing it in a late-night television broadcast.

As reported by the *BBC*, the decision prompted thousands to gather at the parliament in protest, while opposition MPs rushed to hold an emergency vote to overturn the action.

After losing the vote, the president, in office since 2022, appeared hours later to accept the parliament's vote and revoke the martial law order.

South Korea previously imposed martial law on October 27, 1979. This decision was made by Prime Minister Choi Kyu-hah following the assassination of President Park Chung-hee, who seized power through a military coup in 1961, as reported by *CNA*.

Under pressure from the military led by General Chun Doo-hwan, Choi, then acting president, extended martial law until 1980. Similar to the 2024 martial law, all political activities were banned, triggering strong reactions from pro-democracy forces.

Hundreds of people reportedly died in the deadly crackdown before martial law was lifted in 1981 after a referendum.

This political dynamic affected many aspects of life in South Korea. So, what about its economic growth?

According to Statista data, South Korea's annual economic growth during the 1979 martial law period was 8.7% (year-on-year/yoy). However, the following year, in 1980, it plummeted to -1.65%.

The "Land of the Morning Calm" quickly recovered, achieving 7.25% (yoy) growth in 1981.

Although it remained positive for several years afterward, growth fell again in 1998 to -5.13% (yoy). At that time, South Korea, and Asia in general, experienced a monetary crisis in 1997-1998.

The South Korean government scrambled to stabilize the economy, managing to increase growth to 11.47% in 1999.

Another period of negative growth was recorded in 2020 at -0.7%, specifically during the Covid-19 pandemic.

The latest data from 2023 shows South Korea's growth reaching 1.4% (yoy). The International Monetary Fund (IMF) predicts that growth could reach 2.5% for the full year 2024.

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