South Korea has drastically reduced its economic growth forecast for this year, reflecting the impact of martial law turmoil leading to President Yoon Suk-yeol's impeachment, as well as the shadow cast by Trump's tariff plans over this trade-dependent country. In a statement released by the Ministry of Finance on Thursday, it was noted that the South Korean economy is expected to grow by 1.8% in 2025, down from the previous estimate of 2.1% last year. This is lower than the July forecasts of 2.2% and 2.6%, highlighting the pressure on the economy from weak private consumption and slowing export momentum. The ministry stated that global uncertainty is one of the main risks South Korea faces, with potential adjustments in demand for memory chips and intensifying competition among export-dependent economies. It also indicated that the Capital Trend towards the USA and the uncertainty of South Korea's political situation may continue to increase. The government's forecast for economic growth in 2025 is 0.1 percentage points lower than the prediction given by the South Korean central bank in November. Central Bank Governor Lee Chang-yong stated last month to reporters that the bank may further lower its growth forecast for 2025 at the February meeting.