Dooyeon Cho and Jaehun Jung construct a new perception-driven geopolitical risk index based on Korean major local newspapers as in Cho and Kim (2023) to consider perceptions in the Korean peninsula. In contrast, Caldara and Iacoviello (2022) develop country-specific geopolitical risk indices using coverage from 10 major English-language newspapers, which primarily reflect global media perspectives. While their framework provides a useful cross-country benchmark, local media coverage may more accurately capture domestically perceived geopolitical tensions and region-specific risk narratives. Building on this perspective, which emphasizes the role of local media and public sentiment, we analyze how geopolitical risks affect macroeconomic and financial aggregates in Korea’s unique historical and regional context.
The following article develops a new Korea GPR index:
- Narratives in Motion: Perception-Driven Geopolitical Risk in Korea (with Jaehun Jung), Revise & Resubmit