(Bloomberg) -- A former South Korean Trade Minister criticized President Yoon Suk Yeol for his ill-fated decision to decree martial law that sparked a public outcry and jolted financial markets around the world.
“I think he really made a grave mistake,” said former minister Yeo Han-koo, speaking to Bloomberg reporters Wednesday. “He might have been frustrated. But choosing this path is a completely different matter.”
While Yoon’s decree was swiftly overturned by lawmakers who immediately voted to reverse the order, his actions resulted in him losing the confidence of both the Korean people and allies within his own party, Yeo said.
The president’s shock move comes as South Korea faces the prospect of Donald Trump’s return to the White House, and the possibility of higher tariffs that would weigh on global trade. Senior officials in the export-reliant country have already expressed concerns over the risks of weaker trade. Just last week, the Bank of Korea conducted a surprise rate cut in a preemptive move against a potential slowdown in growth.
“It’s really a time for the Korean government and businesses to join forces, get their acts together to prepare for the incoming US administration,” said Yeo, also speaking on Bloomberg TV. “I think there will be massive disruption if Trump 2.0 follows through with those radical campaign promises,” he said. He was referring to the tariffs of 60% on China and 20% on the rest of the world that Trump touted while on the campaign trail.
The BOK pledged Wednesday to take a variety of steps to keep financial markets stable, while Finance Minister Choi Sang-mok announced that the government would also use all available measures to stabilize financial and foreign-exchange markets, with “unlimited liquidity” on the table.
Yeo said those moves are “reassuring” in that they attempt to bring the situation in South Korea back toward normalcy. BOK Governor Rhee Chang-yong said later Wednesday that it is unlikely the central bank will cut interest rates in response to the political turmoil.
“This is very unfortunate deja-vu,” the former trade minister said, referring to how a few months after Trump’s first inauguration in 2017, former President Park Geun-hye was also impeached over corruption charges. She was subsequently convicted and served time in prison, before eventually being pardoned.
“With Trump 2.0 about to come, Korea is entering into another impeachment mode,” Yeo said.
(Updates to add latest comments from BOK Governor. A previous version was corrected to say Yeo spoke on Wednesday, not Tuesday.)
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