After Germany and Japan, South Korea is under "martial law" overnight, and France is "stepping down" tonight? What exactly happened?

A night of terror in South Korea, President Yoon Suk-yeol announced the first state of emergency since 1980 late at night, but it was lifted after just over six hours. Thousands of protesters took to the streets, plunging South Korea into political turmoil...

Immediately following this, Korean asset earthquake, both the Korean stock market and the won fell sharply. The Bank of Korea held an emergency meeting, and the leadership of the ruling party demanded Yoon Suk-yeol resign from the party. Yoon's "right-hand men" also collectively resigned, and the opposition party plans to propose an impeachment motion against Yoon today.

In addition to the overnight upheaval in South Korea, political turmoil deepened in France, where French lawmakers will hold a no-confidence vote against the government on Wednesday. It is expected that far-right leader Marine Le Pen will team up with the left-wing alliance to overthrow the current government.

In fact, there have also been political earthquakes in Germany and Japan. The German ruling coalition suddenly announced its dissolution in early November, while the Japanese ruling coalition lost its majority in October. This year, as a "big election year" globally, every ruling party in developed countries facing elections has lost voter share. What exactly is happening?

Economic Anxiety Triggers Political Turmoil

Public economic anxiety is triggering political turmoil in Germany, Japan, South Korea, and France.

Sydney Seiler, a senior advisor and chair of Korea studies at the Center for Strategic and International Studies, and a former national intelligence officer for North Korea issues, stated:

A warning for investors is that the political turmoil occurring in South Korea bears similarities to the turmoil in Europe and even the United States, often triggered by public economic anxiety.

This aligns with the views of Deutsche Bank's Jim Reid:

The economy is an important factor for most (if not all) countries, and the pace of economic growth has slowed compared to previous decades. This has disappointed voters, as their living standards have not improved as they once did.

Although the growth rate in the U.S. is faster, voters often do not mention this in surveys; they certainly emphasize that inflation and the cost of living are major issues. The willingness of voters to change their voting intentions in each election has significantly increased, while the proportion of voters who consistently vote the same way is decreasing, indicating that there will be more swing voters in the future.

This is consistent with the economic trends in the relevant regions. The South Korean economy may be entering a low-growth era, the Eurozone economy is weak and teetering on the edge of recession, while the U.S. is troubled by high inflation, and Japan is experiencing re-inflation with rising living costs.

South Korean Economic Decline, Yoon Suk-yeol's Approval Rating Drops

Taking South Korea as an example, the likelihood of entering a low-growth period is increasing. Barclays, Citigroup, JP Morgan, HSBC, and Nomura, five global financial institutions, recently predicted that South Korea's economic growth rate will decline to between 1.7% and 1.9% by 2025.

Downward revisions of forecasts are becoming increasingly common, even the Bank of Korea (BOK) has lowered its economic growth forecast for 2025 from 2.1% to 1.9%, while unexpectedly cutting interest rates consecutively. The bank expects the economic growth rate for 2026 to be 1.8%.

This is the first time since data collection began in 1954 that South Korea is expected to see its economic growth fall below 2% for two consecutive years. Despite facing challenges from the 1998 Asian financial crisis, the 2009 global financial crisis, and the 2020 pandemic, the South Korean economy has still managed to recover successfully Analysis suggests that due to increased uncertainty from external factors such as Trump's impending presidency, South Korea's export-dependent economy is facing its greatest challenge.

Dissatisfaction with the economy continues to brew, with Yoon Suk-yeol's approval rating dropping to a historic low; a Gallup poll last Friday showed his approval rating fell to 19%, while the disapproval rate remained at 72%. His approval rating hit a historic low of 17% in the first week of November and has since hovered around 10% to 20% in Gallup polls.

The survey indicates that Yoon Suk-yeol's handling of the economy and foreign affairs, as well as allegations against First Lady Kim Geun-hee, are reasons for the negative evaluations. Additionally, Yoon Suk-yeol is embroiled in corruption scandals, including allegations of stock manipulation and abuse of presidential veto power