“It once felt like a distant issue for Gyeongju, but now it has become our reality. It’s time for Daegu and North Gyeongsang Province to raise their voices like never before.”
These words were spoken at Bonghwangdae Plaza in Gyeongju on Dec. 14, just 30 minutes before the National Assembly passed the impeachment motion against President Yoon Suk-yeol. The speaker warned that the declaration of martial law had disrupted preparations for the Asia-Pacific Economic Cooperation (APEC) summit, with key decisions and funding allocations now in jeopardy. The ensuing political instability could derail the entire summit, he said.
The political turmoil was already escalating. Four days earlier, on Dec. 10, the National Assembly passed the 2025 budget, with opposition lawmakers leading the charge. The approved budget cut 4.1 trillion won from the government’s initial proposal of 677.4 trillion won. Among the reductions, 373.2 billion won requested by North Gyeongsang Province for APEC preparations was slashed to 171.6 billion won, leaving the region scrambling to make up the shortfall.
The ongoing crisis, sparked by the Dec. 3 martial law declaration, casts a shadow over South Korea’s first APEC summit in 20 years. With no end to the turmoil in sight, concerns grow about the financial and logistical viability of the summit, especially regarding infrastructure delays, security uncertainties, and potential diplomatic fallout.
APEC Summit: a major opportunity for Gyeongju and South Korea
Scheduled for late October in Gyeongju, the APEC summit will draw leaders from 21 member nations, including U.S. President Donald Trump, Chinese President Xi Jinping, and Japanese Prime Minister Shigeru Ishiba, along with 6,000 government officials and business representatives. It is projected to generate over 1.8 trillion won in national economic benefits.
North Gyeongsang Province and Gyeongju City began preparations in June, anticipating major gains. A study by the Gyeongbuk Development Institute estimates the summit could generate 972 billion won in production, 465.4 billion won in added value, and create nearly 8,000 jobs in the region. However, with less than a year remaining, the escalating crisis has raised doubts about whether these goals will be achieved.
On Dec. 17, North Gyeongsang Province convened an emergency meeting to address the impeachment’s impact on summit plans. Kim Sang-chul, director general of the APEC Preparation and Support Bureau, indicated that discussions with the Foreign Ministry were ongoing to manage the situation. Kim expressed cautious optimism, citing secured national funding and a special APEC law that provides a legal framework for event support.
However, skepticism remains among key stakeholders. In a Jan. 2 Facebook post, North Gyeongsang governor Lee Cheol-woo has called for bipartisan efforts to restore confidence in South Korea’s political stability. He proposed a joint delegation of ruling and opposition lawmakers to reassure international participants that the summit would proceed as planned.
Financial strain and impeachment woes hold summit plans in limbo
Securing additional funding remains a pressing issue. Gyeongju City plans to request 203.5 billion won in supplementary funding, while North Gyeongsang Province aims to allocate these funds for projects including guesthouse renovations (10 billion won), road expansions and paving near the summit venue (30.4 billion won), and nighttime scenic lighting improvements (12.5 billion won). Additional plans include constructing an APEC memorial park and museum (10.8 billion won). However, the Ministry of Economy and Finance has suggested that a supplementary budget may not be feasible until the second quarter of this year.
Compounding these challenges is a lack of leadership. Under the APEC special law passed in November, the prime minister is responsible for chairing the APEC Preparation Committee. However, Prime Minister Han Duck-soo, who had been tasked as acting president, was impeached on Dec. 27, leaving the position vacant. Deputy Prime Minister and Finance Minister Choi Sang-mok was named acting chair, but concerns persist about his ability to balance summit preparations with other duties.
Some speculate that Choi, facing mounting pressure due to his role in the ongoing crisis, may also face impeachment. On Jan. 8, the Democratic Party of Korea (DPK) filed a police complaint accusing Choi of dereliction of duty, citing his alleged failure to prevent the Presidential Security Service from interfering with the execution of President Yoon’s arrest warrant. If Choi is impeached, Deputy Prime Minister for Social Affairs and Education Minister Lee Ju-ho would assume the role of acting president.
Local businesses pin hopes on APEC law support
Amid these uncertainties, the first ministerial meetings are set to begin next month. Gyeongju residents remain hopeful that preparations will resume as planned. Many cite the bipartisan passage of the APEC law and pledges from opposition leaders, including DPK Chairman Lee Jae-myung, to support summit-related budgets.
“Small business owners like me are struggling since the declaration of martial law,” said Moon Sun-nyeo, who runs a traditional guesthouse in Gyeongju. “This time of year, I’m usually fully booked, but now my guesthouse is nearly empty. We just hope the country stabilizes soon—the uncertainty has gone on too long and is affecting all of us.”
