South Korea’s martial moment

Insight: In one of the more bizarre political episodes in a year filled with incidents, South Korean President Yoon Suk Yeol first declared martial law on Monday and then lifted it again six hours later. The attempt to outmaneuver his opposition in parliament backfired spectacularly in a country that was under a military dictatorship as recently as 1979. It has led to street protests, a sharp drop in stocks and the won and a move to impeach Mr Yoon. 

Impact: It takes decades to build a reputation and only moments to destroy one. As Korea has just demonstrated, this applies to countries as much as to businesses or individuals. The immediate fallout may be largely domestic, with analysts speculating about the need for fresh elections. But the long-term consequences are likely to be more damaging for a country poised to become a mature developed economy – namely, a rise in its risk premium, which will reduce foreign investment; and a loss of credibility as a stable ally in a region already beset by geopolitical stresses. 

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China’s 10-year government bond yield fell below 2% for the first time this week, pushing it below Japan’s and raising fears of a deflationary spiral that cost Japan three ‘lost decades’ of economic growth.

Insight: Another month, another curveball in the ongoing will-they-won’t-they saga of Nippon Steel’s proposed takeover of US Steel. President-elect Donald Trump is now vowing to block the move. While this is unsurprising since opposition to the merger in Washington is bipartisan, US Steel itself had recently urged politicians to let the deal go through, arguing that blocking it would risk “thousands of jobs.” The statement betrayed the financial hardships the company is facing, but now Trump promises to make it “strong and great again” through tariffs and tax incentives. 

Impact: Despite US Steel and Nippon Steel wanting their merger to happen, they apparently underestimated the lengths US politicians would go through to appear tough on foreign influence. While a Harris win might have led to compromise, Trump’s move back into the White House all but dooms the deal and potentially dashes the hopes of countless other foreign companies hoping to do more business in America.

Insight: In an attempt to appeal to younger female shoppers ahead of its Singles Day online sales extravaganza, JD.com appointed Yang Li—a stand-up comedienne known for her witty takes on modern feminism and her cynical commentary on "overconfident" Chinese men—as its brand ambassador. The decision quickly sparked backlash from conservative male JD.com users, who perceive Yang Li as adversarial to their personal values. Some men even threatened to boycott the e-commerce platform by cancelling memberships. JD.com seems to have buckled under the pressure, rushing to remove all promotional materials featuring Yang and denying any plans for future collaborations. 

Impact: With more than 2.5 million followers on Weibo, China’s native social media app, Yang Li has won the hearts of younger generations of women, standing as a symbol of feminism and freedom of expression in China. While Yang is at the forefront of a trend of women in China using humour to express their views on gender inequality, JD.com’s experience serves as a cautionary reminder for global brands navigating the complex dynamics of brand ambassador selection in polarized societies like China, highlighting the need to balance popularity with the potential for controversy.

Japan's national boozy beverage gets the "intangible cultural heritage" treatment

Insight: In a move some might argue is long overdue, the United Nations Educational, Scientific and Cultural Organization, more popularly known as UNESCO, has recognized Japanese sake on its list of “intangible cultural heritage” items. With this designation, sake joins a prestigious list of culturally important craft products, including the French baguette and Turkish Ahlat stonework. 

Impact: Despite the deep cultural importance sake holds in Japan, the Japanese themselves seem less interested in the beverage than ever. Beer has outpaced domestic sake sales by orders of magnitude for decades and in 2023 over half of sake breweries reported struggling to turn a profit. The good news is the rest of the world has taken notice of sake, with countries like the United States and China importing vast quantities. The hope is that the new UNESCO designation will not only further increase international exports, but perhaps rekindle Japan’s own interest in the beverage, potentially saving hundreds of embattled brewers and rice farms in the process. 

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