The Bank of Korea (BOK) has revised its economic growth forecast for the year, lowering it to a range of 1.6% to 1.7%, a significant adjustment from the previously projected 1.9%, as outlined in its November 2024 assessment, citing the compounding effects of political instability and weakened economic sentiment as primary factors influencing this downward revision. This updated forecast was disclosed on Monday in the central bank’s economic assessment report, where officials highlighted that last month’s declaration of martial law has not only created an atmosphere of political uncertainty but also eroded consumer and business confidence, thereby placing additional strain on an already fragile economic recovery. In explaining the rationale behind the adjustment, the BOK emphasized that while it anticipates political uncertainty to gradually subside following the first quarter of 2025, the speed and extent of economic recovery will remain contingent upon several critical variables, including the resolution of ongoing political turmoil, the timely implementation and effectiveness of government-sponsored economic stimulus measures, and the policy directions adopted by the newly inaugurated U.S. administration. The central bank further noted that the economic impact of these variables, along with their interconnected effects on global trade and domestic financial markets, will form the basis of an updated forecast scheduled for release next month, underlining the need for continued vigilance and adaptability in addressing the rapidly evolving challenges facing the national economy.

Israeli Prime Minister Benjamin Netanyahu announced that the planned ceasefire in Gaza, originally set to begin at 6:30 a.m. local time on Sunday, will not proceed until the Palestinian militant group Hamas provides a detailed list of hostages slated for release, underscoring the tense and conditional nature of the truce. This announcement, which came just an hour before the anticipated start of the ceasefire, marked a critical moment in the ongoing conflict, as the release of hostages was seen as a pivotal step toward ending the 15-month war that has deeply destabilized the Middle East. According to a statement from Netanyahu's office, the prime minister instructed the Israel Defense Forces (IDF) to delay the ceasefire until Israel receives confirmation from Hamas regarding the identities of the abductees included in the first phase of the agreement. Hamas, in response, reiterated its commitment to the ceasefire deal but attributed the delay in disclosing the names of hostages to "technical field reasons." Pro-Hamas media outlets reported that, in preparation for the ceasefire, Israeli forces had begun withdrawing from areas in Gaza’s Rafah region toward the Philadelphi Corridor, a strategic zone along the Egypt-Gaza border. However, Israeli military officials issued warnings to Gaza residents, advising them to refrain from approaching IDF troops or moving freely within the territory until further instructions are provided. The ceasefire agreement, which emerged after protracted negotiations mediated by Egypt, Qatar, and the United States, comes at a critical juncture, just days before the inauguration of U.S. President-elect Donald Trump on January 20. The agreement, structured in three stages, is set to begin at 6:30 p.m. local time on Sunday, with the first phase lasting six weeks. During this period, Hamas is expected to release 33 hostages, including women, children, elderly men over 50, and individuals who are ill or wounded, in exchange for nearly 2,000 Palestinian prisoners and detainees. This highly conditional and meticulously negotiated ceasefire highlights the fragile balance of trust and strategic interests between the parties involved. Analysts have noted that the success of the agreement will depend not only on the immediate release of hostages and prisoners but also on the ability of both sides to maintain the terms of the truce amid longstanding hostilities. Further developments are expected as both Israel and Hamas navigate the delicate and highly scrutinized implementation of the agreement, which many hope will pave the way for a broader resolution to the conflict.