South Korea’s tourism and retail industries are facing disruptions following the brief declaration of martial law by President Yoon Suk Yeol on 3 December. In response, countries such as the United States, the United Kingdom, Japan, and Australia issued travel advisories starting 4 December, cautioning their citizens to remain vigilant and avoid crowded areas.
The current political situation has drawn more global attention compared to past instances of unrest, such as the protests during the impeachment of former President Park Geun-hye in 2016.
Businesses within the travel and retail sectors are monitoring the situation closely. Retailers catering to international tourists report no immediate impact on sales but remain concerned about potential declines. Hotels in Seoul have already experienced cancellations and increased requests for alternative arrangements from international guests, with December traditionally being a peak season for corporate and festive events.
The country’s largest airline, Korean Air, and its leading travel agency, Hana Tour, saw their stock values drop by over 5% in recent days. The South Korean won also faced volatility, surpassing 1,440 against the US dollar shortly after the martial law announcement, its highest level since the global financial crisis in 2009, before settling at 1,410 on 6 December.
These developments come as the tourism and retail sectors are already contending with slower growth in visitors from key markets, including China, and the effects of unfavourable exchange rates. The situation continues to evolve, with businesses and officials closely monitoring its impact.