Wed Dec 04 09:42:30 UTC 2024: ## South Korea Political Unrest Shakes Markets, Impacts Indian Investments
**SEOUL/MUMBAI** – Political turmoil in South Korea, following an unspecified emergency situation, sent shockwaves through global markets. The South Korean stock market plummeted by as much as 2%, and crude oil prices surged by 2%. The instability is also impacting India, where the considerable investments of several major Indian companies in South Korea are now at risk.
Bilateral trade between India and South Korea has significantly increased in recent years, reaching $27.8 billion in FY2022-23, a 21.46% rise from $21.5 billion in 2018. April-May 2023-24 trade alone totaled $4.29 billion. This robust trade relationship is underpinned by substantial Indian investment in South Korean companies.
Several large Indian corporations have significant stakes in the South Korean economy. Tata Motors has invested approximately $102 million, primarily through its commercial vehicle subsidiary, Tata Daewoo, headquartered in Gunsan. State Bank of India (SBI) maintains branches in Seoul, and other major Indian players such as Bank of Baroda, Tata Consultancy Services (TCS), and Mahindra Tech also hold substantial investments.
The current political instability raises concerns about the potential impact on these investments and their associated stocks. Analysts are monitoring the situation closely, warning of potential negative consequences for Indian companies operating in South Korea should the political climate further deteriorate.
First Piper 