Ukraine war will damage South Korea's economic growth

Significance

It threatens its energy security, creates cost-push inflation due to rising prices of imported commodities and disrupts exports and supply chains. This will slow South Korea's economic recovery from the COVID-19 pandemic.

Impacts

• The repercussions of the Ukraine conflict will cause structural shifts in South Korea's energy mix and resource supply sources.
• Seoul will try to minimise behaviour that damages bilateral relations with Moscow.
• South Korean companies that scale down their Russia business could lose that market to Chinese competitors.