South Korean stocks end the year down 10% after political turmoil and the Jeju Air plane crash

Seoul: It’s been a rough year for South Korean stocks, which ended 2024 down nearly 10%. This drop comes after a mix of political chaos and a tragic plane crash that shook the nation.

The Kospi index, which is a key market measure, saw a significant decline this year, especially when you compare it to a solid 19% rise in 2023. It’s a stark contrast, right?

Adding to the gloom, Jeju Air shares hit a record low following a deadly crash over the weekend. The airline, which has been around since 2015, is now facing some serious challenges.

Just this past Sunday, a Jeju Air Boeing 737-800 crashed while landing at a South Korean airport, resulting in the loss of 179 lives. It was carrying 181 people in total, which is just heartbreaking.

After the crash, Jeju Air’s stock plummeted by as much as 16% and closed down 8.7% on Monday. Even the parent company, AK Holdings, saw its shares drop by 12%.

The political scene isn’t looking great either. South Korea has been in a state of uncertainty, with three presidents in a short span due to the impeachment of President Yoon Suk Yeol. The acting president, Choi Sang-mok, stepped in just recently.

This political mess started when Yoon declared martial law for a brief period, and things have been shaky ever since. Analysts are saying that this instability could continue, making it tough for the government to make any big decisions.

With all this going on, many investors are likely hesitant to jump into the stock market. It seems like January could be a bumpy ride for trading, with volatility expected.

It’s a tough time for South Korea, and everyone is hoping for some stability soon.