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\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"};

\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The company's income of more than Dh375,000 will come under the taxable category. Profits before that threshold will have a zero per cent tax rate. In May, the Ministry of Finance announced that business owners will only have corporate tax if their annual turnover exceeds Dh1 million, ensuring that income from business or business-related activities is taxed.<\/p>\n\n\n\n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The UAE introduced the federal corporate tax with a standard statutory rate of 9%, starting from the financial year beginning or after June 1 last year.<\/p>\n\n\n\n

The company's income of more than Dh375,000 will come under the taxable category. Profits before that threshold will have a zero per cent tax rate. In May, the Ministry of Finance announced that business owners will only have corporate tax if their annual turnover exceeds Dh1 million, ensuring that income from business or business-related activities is taxed.<\/p>\n\n\n\n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The minister mentioned that UAE's adoption of DMTT will align with the OECD GloBe Model Rules.<\/p>\n\n\n\n

The UAE introduced the federal corporate tax with a standard statutory rate of 9%, starting from the financial year beginning or after June 1 last year.<\/p>\n\n\n\n

The company's income of more than Dh375,000 will come under the taxable category. Profits before that threshold will have a zero per cent tax rate. In May, the Ministry of Finance announced that business owners will only have corporate tax if their annual turnover exceeds Dh1 million, ensuring that income from business or business-related activities is taxed.<\/p>\n\n\n\n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

In September, Bahrain announced that it will implement DMTT from January 1 next year for large MNEs.<\/p>\n\n\n\n

The minister mentioned that UAE's adoption of DMTT will align with the OECD GloBe Model Rules.<\/p>\n\n\n\n

The UAE introduced the federal corporate tax with a standard statutory rate of 9%, starting from the financial year beginning or after June 1 last year.<\/p>\n\n\n\n

The company's income of more than Dh375,000 will come under the taxable category. Profits before that threshold will have a zero per cent tax rate. In May, the Ministry of Finance announced that business owners will only have corporate tax if their annual turnover exceeds Dh1 million, ensuring that income from business or business-related activities is taxed.<\/p>\n\n\n\n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

According to the OECD report last year, this global minimum tax will give approximately $220 billion in global annual income gains or 9% of the total global company tax income.<\/p>\n\n\n\n

In September, Bahrain announced that it will implement DMTT from January 1 next year for large MNEs.<\/p>\n\n\n\n

The minister mentioned that UAE's adoption of DMTT will align with the OECD GloBe Model Rules.<\/p>\n\n\n\n

The UAE introduced the federal corporate tax with a standard statutory rate of 9%, starting from the financial year beginning or after June 1 last year.<\/p>\n\n\n\n

The company's income of more than Dh375,000 will come under the taxable category. Profits before that threshold will have a zero per cent tax rate. In May, the Ministry of Finance announced that business owners will only have corporate tax if their annual turnover exceeds Dh1 million, ensuring that income from business or business-related activities is taxed.<\/p>\n\n\n\n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

According to the OECD<\/a>, this move was taken to solve the tax problems due to digitalization and globalization in the economy while establishing a base for tax competition.<\/p>\n\n\n\n

According to the OECD report last year, this global minimum tax will give approximately $220 billion in global annual income gains or 9% of the total global company tax income.<\/p>\n\n\n\n

In September, Bahrain announced that it will implement DMTT from January 1 next year for large MNEs.<\/p>\n\n\n\n

The minister mentioned that UAE's adoption of DMTT will align with the OECD GloBe Model Rules.<\/p>\n\n\n\n

The UAE introduced the federal corporate tax with a standard statutory rate of 9%, starting from the financial year beginning or after June 1 last year.<\/p>\n\n\n\n

The company's income of more than Dh375,000 will come under the taxable category. Profits before that threshold will have a zero per cent tax rate. In May, the Ministry of Finance announced that business owners will only have corporate tax if their annual turnover exceeds Dh1 million, ensuring that income from business or business-related activities is taxed.<\/p>\n\n\n\n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The OECD two-pillar reform set up a global minimum corporate tax for all large multinational enterprises to pay a minimum of 15% tax on profits in every country they operate.<\/p>\n\n\n\n

According to the OECD<\/a>, this move was taken to solve the tax problems due to digitalization and globalization in the economy while establishing a base for tax competition.<\/p>\n\n\n\n

According to the OECD report last year, this global minimum tax will give approximately $220 billion in global annual income gains or 9% of the total global company tax income.<\/p>\n\n\n\n

In September, Bahrain announced that it will implement DMTT from January 1 next year for large MNEs.<\/p>\n\n\n\n

The minister mentioned that UAE's adoption of DMTT will align with the OECD GloBe Model Rules.<\/p>\n\n\n\n

The UAE introduced the federal corporate tax with a standard statutory rate of 9%, starting from the financial year beginning or after June 1 last year.<\/p>\n\n\n\n

The company's income of more than Dh375,000 will come under the taxable category. Profits before that threshold will have a zero per cent tax rate. In May, the Ministry of Finance announced that business owners will only have corporate tax if their annual turnover exceeds Dh1 million, ensuring that income from business or business-related activities is taxed.<\/p>\n\n\n\n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

It shows the UAE's <\/a>dedication to adopting the two-pillar resolution of the Organisation for Economic Co-operation and Development (OECD). It aims to create a fair and transparent tax system aligned with international standards.<\/p>\n\n\n\n

The OECD two-pillar reform set up a global minimum corporate tax for all large multinational enterprises to pay a minimum of 15% tax on profits in every country they operate.<\/p>\n\n\n\n

According to the OECD<\/a>, this move was taken to solve the tax problems due to digitalization and globalization in the economy while establishing a base for tax competition.<\/p>\n\n\n\n

According to the OECD report last year, this global minimum tax will give approximately $220 billion in global annual income gains or 9% of the total global company tax income.<\/p>\n\n\n\n

In September, Bahrain announced that it will implement DMTT from January 1 next year for large MNEs.<\/p>\n\n\n\n

The minister mentioned that UAE's adoption of DMTT will align with the OECD GloBe Model Rules.<\/p>\n\n\n\n

The UAE introduced the federal corporate tax with a standard statutory rate of 9%, starting from the financial year beginning or after June 1 last year.<\/p>\n\n\n\n

The company's income of more than Dh375,000 will come under the taxable category. Profits before that threshold will have a zero per cent tax rate. In May, the Ministry of Finance announced that business owners will only have corporate tax if their annual turnover exceeds Dh1 million, ensuring that income from business or business-related activities is taxed.<\/p>\n\n\n\n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33062","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33045,"post_author":"1","post_date":"2024-12-09 09:30:00","post_date_gmt":"2024-12-09 09:30:00","post_content":"\n

This initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/strong><\/h4>\n\n\n\n

The New Zealand government plans to pursue a capital investment of up to NZ$500 million ($290 million) for its state-owned bank, Kiwibank<\/a>, to improve the competition within the banking sector, dominated by four Australian banks: ANZ<\/a>, ASB, BNZ, and Westpac.<\/p>\n\n\n\n

Finance Minister Nicola Willis announced at a post-cabinet news conference on Monday in Wellington that Kiwibank\u2019s parent company, Kiwi Group Capital, and the Treasury Department will discuss the investment with local investors, including KiwiSaver pension funds. A final decision is expected by mid-2025.<\/p>\n\n\n\n

She stated that this initiative will enable the New Zealand-owned bank to compete more vigorously against the four Australian-owned banks.<\/p>\n\n\n\n

She continued saying that New Zealand<\/a> often felt undershadowed by Australia<\/a>. They are working to strengthen their position to create a more equitable outcome for Kiwis.<\/p>\n\n\n\n

Willis has criticized the Australian banks for creating an oligopoly in New Zealand, stating that their competition resembles more of a cozy pillow fight. In a report published earlier this year, the Antitrust Commerce Commission recommended that Kiwibank receive more capital to challenge the larger banks.<\/p>\n\n\n\n

Willis mentioned today that an extra NZ$500 million of capital for Kiwibank would support up to NZ$4 billion in business loans or NZ$10 billion in home loans, which could add competitive pressure in the market and potentially benefit customers of Kiwibank and other banks.<\/p>\n\n\n\n

According to Willis, the more capital Kiwibank has, it will increase its ability to compete in the banking sector and lower the chances of interest rates coming down for all its customers.<\/p>\n\n\n\n

Willis said that this investment was not an asset sale, which Prime Minister Christopher Luxon committed not to do during his time in opposition.<\/p>\n\n\n\n

Currently, the four biggest lenders collectively hold 90% of the deposits. The Australia and New Zealand Banking Group Ltd. and Westpac Banking Corp. run their brands. Commonwealth Bank of Australia owns ASB Bank, and National Australia Bank<\/a> Ltd. controls the Bank of New Zealand.<\/p>\n\n\n\n

Willis states that in the long term, public share offerings will be the most accessible source for Kiwibank's additional capital.<\/p>\n\n\n\n

She continued stating that no decision will be made regarding public offerings in this government term since Kiwibank will be prepared for public offerings once its digital transformations are completed and finished by 2028.<\/p>\n\n\n\n

She added that if the initial public offering is not authorized by the future date, investors might have to sell their shares back to the Crown at a fair value determined through an independent assessment.<\/p>\n\n\n\n

The challenge with this plan is that by restricting the organizations that can only participate in New Zealand, Willis may not get optimal value for money, which could come from being indifferent to the source of capital.<\/p>\n\n\n\n

Investors will become nervous about future restrictions on selling their investments, which might reduce their interest in investing.<\/p>\n\n\n\n

When faced with this criticism, Willis said that the government was advised that a broad public offering would be the best decision in the medium run since it would give the best price and most favorable investment for Kiwibank.<\/p>\n\n\n\n

Willis has also issued a new Financial Policy Remit and a letter of expectations to the Reserve Bank<\/a> to emphasize that the government is committed to fostering competition within the banking industry.<\/p>\n\n\n\n

She stated that the RBNZ anticipates expanding access to the exchange settlement system, reassessing the risks for the range of bank lending, reviewing the minimum capital requirement for the new entrants in the banking industry, and working with the industry to increase the accessibility of bank accounts.<\/p>\n\n\n\n

The big banks should be cautious since the government is open to the possibility of future actions if they do not observe significant progress.<\/p>\n","post_title":"New Zealand to Invest $290M in State-Owned Kiwibank to Challenge Big Four Banks","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"new-zealand-290m-kiwibank","to_ping":"","pinged":"","post_modified":"2024-12-09 11:51:21","post_modified_gmt":"2024-12-09 11:51:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33045","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33033,"post_author":"1","post_date":"2024-12-06 09:30:00","post_date_gmt":"2024-12-06 09:30:00","post_content":"\n

Martial law unsettled the market and made South Korea's economy face its biggest political crisis in decades.<\/strong><\/h4>\n\n\n\n

South Korean President Yoon Seok Yeol promised to increase confidence in Korea\u2019s stock market<\/a> since it was known to be undervalued compared to other markets.<\/p>\n\n\n\n

But as 2024 is ending, he briefly announced martial law<\/a>, which unsettled the market and made Asia's fourth-largest economy face its biggest political crisis in decades.<\/p>\n\n\n\n

Geoffrey Cain, the author of Samsun Rising and managing director of Alembic Partners, stated that South Korea<\/a> is seen as strong, mentioning that the country is an exception since China<\/a> heavily overshadows Hong Kong<\/a> and Taiwan<\/a>.<\/p>\n\n\n\n

However, the martial law rattled the markets, which shows that South Korea is not as secure as many market analysts believe.<\/p>\n\n\n\n

Since the National Assembly voted for Yoon\u2019s impeachment, it made the president's political future very uncertain.<\/p>\n\n\n\n

Yoon had dismissed demands for his resignation, and the People Power Party (PPP) leader announced that they would oppose the impeachment move but doubt its success.<\/p>\n\n\n\n

PPP leader informed the reporters that he could not defend Yoon\u2019s declaration of martial law but would seek to unfit his party against the motion.  <\/p>\n\n\n\n

Since the Democratic Party (DP) and other opposition groups have 192 seats in the 300-member National Assembly, the opposition needs at least eight conservative lawmakers to achieve the majority votes needed for impeachment.<\/p>\n\n\n\n

The South Korean Constitutional Court can decide whether to dismiss Yoon from his office only if the proposal is successful.<\/p>\n\n\n\n

On Wednesday, South Korea hit a two-year low against the US dollar<\/a> before recovering much of the lost ground.<\/p>\n\n\n\n

The market has not been affected much till now. Yeo Han-koo, a former South Korean trade minister, stated that the Korean government is working on a contingency plan but is unsure how quickly they can restore stability.<\/p>\n\n\n\n

Analysts warn that political instability can continue for an extended period, but the current fallout is manageable. A prolonged standoff can be worse for South Korea\u2019s financial market and overall economy.<\/p>\n\n\n\n

Gareth Leather, a senior economist at Capital Economics, stated problems would arise if the president remains in power and does not step down and his party is against impeachment.<\/p>\n\n\n\n

Thailand <\/a>has experienced political instability since the 2006 coup, showing that ineffective leadership can affect economic progress.<\/p>\n\n\n\n

While South Korea has some renowned corporate giants like Samsung <\/a>and Hyundai<\/a>, South Korean stocks have been historically undervalued compared to global companies.<\/p>\n\n\n\n

Apple's <\/a>market capitalization is 14 times that of Samsung Electronics, the crown jewel of the Samsung group, even though its revenue is only a third higher than its Korean competitor.<\/p>\n\n\n\n

After his commitment to stabilize the market, Yoon introduced reforms to enhance the stock market, like introducing an index focusing on companies that have increased capital efficiency and tax benefits for the companies to improve shareholder return.<\/p>\n\n\n\n

Some received positive feedback from investors, but the initiatives had little effect on the market.<\/p>\n\n\n\n

Even before Yoon declared martial law, KOSPI was down 14% from July. There was a weak performance in the stock market after the economy weakened, demand declined in China, and expectations of hefty tariffs under Trump.<\/p>\n\n\n\n

Data from the central bank <\/a>on Thursday shows that the gross domestic product grew only 0.1 percent during July-September after a 0.2% decline in the previous quarter.<\/p>\n\n\n\n

The growth rate of 1.4% from last year was the weakest since the aftermath of the 2008 global financial crisis, excluding the COVID-19 pandemic.<\/p>\n\n\n\n

South Korea is facing long-term challenges: competition from Taiwan in exports, geopolitical threats from China, and the industrial economy.<\/p>\n\n\n\n

Experts hope that despite political instability and economic challenges, South Korea will overcome them through their strong economic foundations.<\/p>\n\n\n\n

Right-wing populists are keeping Victor Orban as a model. But, for an example of democratic backsliding, South Korea will be seen as a model.<\/p>\n\n\n\n

Soohyung Lee, a member of the Monetary Policy Board at the Bank of Korea, expressed that the political instability will not have a lasting effect on South Korea\u2019s economy.<\/p>\n\n\n\n

South Korea is ready to face any political challenges without any individual disrupting the system. History has shown that South Korea became stronger, with Lee pointing out the rapid recovery from the 1997 Asian financial crisis and the 2008 global financial crisis as examples.<\/p>\n\n\n\n

Yeo, the former trade minister, remarked that many developed countries face economic challenges.<\/p>\n\n\n\n

South Korea has an advantage in advanced technology and manufacturing but struggles with political and geopolitical tensions and corporate governance. The key lies in how Korea uses its advantages and addresses its disadvantages.<\/p>\n","post_title":"How Martial Law and Impeachment Pushes South Korea Into Political and Market Instability","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"south-korea-instability","to_ping":"","pinged":"","post_modified":"2024-12-06 09:47:00","post_modified_gmt":"2024-12-06 09:47:00","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33033","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_1o3","class":"jnews_block_3"}; \n

The domestic minimum top-up tax (DMTT) will apply to MNEs with a consolidated global income of \u20ac750 million ($793 million) or more in at least two of the four financial years before tax implementation for the financial year.<\/p>\n\n\n\n

It shows the UAE's <\/a>dedication to adopting the two-pillar resolution of the Organisation for Economic Co-operation and Development (OECD). It aims to create a fair and transparent tax system aligned with international standards.<\/p>\n\n\n\n

The OECD two-pillar reform set up a global minimum corporate tax for all large multinational enterprises to pay a minimum of 15% tax on profits in every country they operate.<\/p>\n\n\n\n

According to the OECD<\/a>, this move was taken to solve the tax problems due to digitalization and globalization in the economy while establishing a base for tax competition.<\/p>\n\n\n\n

According to the OECD report last year, this global minimum tax will give approximately $220 billion in global annual income gains or 9% of the total global company tax income.<\/p>\n\n\n\n

In September, Bahrain announced that it will implement DMTT from January 1 next year for large MNEs.<\/p>\n\n\n\n

The minister mentioned that UAE's adoption of DMTT will align with the OECD GloBe Model Rules.<\/p>\n\n\n\n

The UAE introduced the federal corporate tax with a standard statutory rate of 9%, starting from the financial year beginning or after June 1 last year.<\/p>\n\n\n\n

The company's income of more than Dh375,000 will come under the taxable category. Profits before that threshold will have a zero per cent tax rate. In May, the Ministry of Finance announced that business owners will only have corporate tax if their annual turnover exceeds Dh1 million, ensuring that income from business or business-related activities is taxed.<\/p>\n\n\n\n

David Daly, a partner at Gulf Tax Accounting Group, states that announcements regarding a separate tax rate for multinationals have been under consideration for quite some time.<\/p>\n\n\n\n

He added that MNCs have been expecting this change, and some reassurance is that it will only take effect from January 2025. It provides a 19-month period at a 9% low rate since it was introduced in June 2023.<\/p>\n\n\n\n

There is a revenue tapering that will exempt companies from the entry-level income from DMTT.<\/p>\n\n\n\n

In 2018, the UAE also introduced a 5% VAT <\/a>on goods and services to expand the economy and reduce its dependence on oil. This tax is a general consumption tax that is applied to most goods and services bought and sold.<\/p>\n\n\n\n

According to the Ministry of Finance<\/a> data, the tax income was Dh272.6 billion during the first three quarters of 2024.<\/p>\n\n\n\n

On Monday, the minister mentioned that it is looking for corporate tax incentives to strengthen the economic competitiveness and enhance the business environment.<\/p>\n\n\n\n

A new research and development tax incentive is under consideration to promote R&D and innovation.<\/p>\n\n\n\n

The Ministry stated that it will be based on expenditures, given tax credits between 30 and 50%, and refunded based on revenue and workforce in the UAE.<\/p>\n\n\n\n

OECD\u2019s Frascati Manual provides guidelines for R&D activities and must be conducted within the country. This incentive will likely start for tax periods on or after January 2026.<\/p>\n\n\n\n

Another incentive that is under consideration is a refundable tax credit for high-value employment activities.<\/p>\n\n\n\n

It is given as part of salary expenses for employees in high-value jobs, including C-suite executives and other senior staff, that will benefit the UAE economy.<\/p>\n\n\n\n

This will take effect in January of next year. This aims to motivate companies to engage in activities that will benefit the economy<\/a>, encourage innovation, and boost the UAE's global competitiveness.\u00a0<\/p>\n","post_title":"UAE Plans to Introduce 15% Company Tax on MNCs","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"uae-15-company-tax","to_ping":"","pinged":"","post_modified":"2024-12-11 10:02:18","post_modified_gmt":"2024-12-11 10:02:18","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.theglobaleconomics.com\/?p=33116","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":33062,"post_author":"1","post_date":"2024-12-10 09:30:00","post_date_gmt":"2024-12-10 09:30:00","post_content":"\n

If the order is not passed, TikTok could be banned in the United States within six weeks and negatively impact the companies that rely on them for sales.<\/strong><\/h4>\n\n\n\n

TikTok<\/a> has appealed to the court to temporarily block a law that requires China-based parent company ByteDance to divest TikTok <\/a>by January 19 or face a ban while the case is being heard in the United States Supreme Court.<\/p>\n\n\n\n

The Chinese company filed an emergency motion on Monday to the US Court of Appeals for the District of Columbia, warning that without this order, the law would come into effect and shut down TikTok, which is one of the most used speech platforms in the country with more than 170 million domestic monthly users on the day before presidential inauguration.<\/p>\n\n\n\n

If the order is not passed, TikTok could be banned in the United States<\/a> within six weeks, which would reduce its value for ByteDance and its investors and negatively impact the companies that rely on TikTok for sales.<\/p>\n\n\n\n

Last Friday, a three-judge panel of the appeals court confirmed the law requires ByteDance to divest TikTok in the US by early next year or encounter a ban in just 42 days.<\/p>\n\n\n\n

Legal representatives of the company said that there is a higher chance that the Supreme Court will consider the case and reverse it, so it is justified to temporarily pause the operations to give time for further deliberation.<\/p>\n\n\n\n

The companies also pointed out that US President-elect Donald Trump has pledged to present a ban, arguing that the delay will give time for the incoming administration to establish its position, which could nullify the impending damages and the need for Supreme Court review.<\/p>\n\n\n\n

The US Department of Justice stated that the appeal court should quickly reject the request so that the Supreme Court can maximize the time to review the petitions from ByteDance and TikTok. It has requested that the appeals court decide on this matter by December 16.<\/p>\n\n\n\n

Unless the verdict is reversed by the Supreme Court, its future relies on President Joe Biden<\/a> to either extend a 90-day extension beyond the January 19 deadline or force a sale and then on Donald Trump, who will take office on January 20.<\/p>\n\n\n\n

However, it is not clear whether ByteDance <\/a>will meet the heavy requirement to show it made progress towards a divestiture to qualify for an extension.<\/p>\n\n\n\n

Trump has previously attempted to ban TikTok during his first term in 2020. But he started before the November presidential election that he would not allow to ban TikTok.<\/p>\n\n\n\n

Mike Waltz, Trump\u2019s incoming national security adviser, mentioned that Trump<\/a> is keen to protect TikTok, emphasizing the need for Americans to access the app while safeguarding the data.<\/p>\n\n\n\n

The decision supports the law that gives the US government extensive authority to ban internationally owned apps that obtain details about Americans to cause problems.<\/p>\n\n\n\n

Trump also tried to ban WeChat <\/a>in 2020, which is owned by Tencent, a Chinese company, but his attempts were blocked by the courts.<\/p>\n\n\n\n

TikTok warned on Monday that the court ruling would interrupt the services of millions of people using TikTok past the United States. The app said that hundreds of US service providers that handle maintenance, distribution, and updates would not be able to support the TikTok platform starting from January 19.<\/p>\n\n\n\n

Before its Supreme Court appeal, the company asked seasoned US Supreme Court lawyer Noel Francisco's help.<\/p>\n\n\n\n

The court paper shows that Francisco, the US solicitor general during Republican President-elect Donald Trump's first administration, will represent TikTok with his partner Hashim Mooppan.<\/p>\n\n\n\n

Francisco supported Trump\u2019s ban on entry into the US for citizens of six predominately Muslim countries as the Justice Department's top Supreme Court lawyer from 2017 to 2020. He has represented over 20 cases before the high court.<\/p>\n","post_title":"TikTok Pushes Back Against US Court Mandating Ban by January 19","post_excerpt":"","post_status":"publish","comment_status":"open","ping_status":"open","post_password":"","post_name":"tiktok-us-court-ban","to_ping":"","pinged":"","post_modified":"2024-12-10 10:24:49","post_modified_gmt":"2024-12-10 10:24:49","post_content_filtered":"","post_parent":0,"guid":