The Korean crisis is on hold; Now let’s hope Trump goes easy on tariffs, says ALEX BRUMMER

The World Bank often cites South Korea as an example of economic development. Since the Korean War ended in 1953, it has rapidly advanced from an underdeveloped nation to the Western “first league.”

It is the fourth economy in Asia, the twelfth in the world, with a production of 1.5 trillion pounds (half of the United Kingdom), and part of an economic and cultural elite that has given us Samsung, the fashion of Gangnam, Squid Game and Spurs footballer Son. Heung Min.

On a trip to Seoul a few years ago for an International Monetary Fund meeting, the protests against visiting bankers were among the most elegant I have witnessed.

Well-organized protesters, dressed in white judo-style suits, ran through the city crocodile style.

It came as a surprise when directly elected President Yoon Suk Yeol suddenly declared martial law on Monday, sparking street protests and opposition in the legislature. Yoon now faces impeachment.

Some might see echoes of the events that occurred in Washington on January 6, 2020, when defeated US President Donald Trump came to the aid of his supporters who invaded the US Capitol seeking to overturn the election.

Global economic decision makers are always on alert for the next disruption that will occur immediately after the great financial crisis, Covid and Russia’s war against Ukraine.

No one predicted it would come from South Korea.

The trigger was a confrontation over a budget that would have increased funding for Yoon’s office, the police and other public agencies. Yoon attempted to blame North Korean influencers in the legislature for the need to restore order.

For a few hours the markets faltered. The South Korean currency, the won, fell to its lowest level in two years. A bid by a private equity giant for HD Marine Solution has been withdrawn. Korean stocks plummeted.

South Korea lives off exports. This writer is a user of a Samsung TV, mobile phone and watch. Seoul is vulnerable to Trump-era tariffs.

Citibank estimates that the tariffs will reduce production from 1.8 percent to 1.6 percent in 2025.

One suspects that, given South Korea’s exposure to authoritarian lunatics in North Korea, even Trump might play it cool.

Hopefully, this will be a catastrophe averted.

Watch the gap

Closer to home, our new Transport Secretary Heidi Alexander has been celebrating the renationalisation of South Western Railway, saying we can expect better service and lower fares.

How, is less clear.

He argues that reducing the management fees paid by the Government to railway companies would help. Maybe, but the Government will need to hire new administrators.

Neither Network Rail nor Transport for London are known for their frugal salaries. Similarly, Alexander cited industrial peace in reaching an agreement with the unions. But that’s likely to lead to higher fees, given that the big giveaway wasn’t without any productivity requirements.

If real improvements are to be made, modernization will be necessary.

That requires money. When the next round of public spending arrives in June, rail will compete with the NHS, education, social care and much more.

Travelers will be low on the priority list.