The Bank of Korea released a concerning economic report at the end of August.
According to the Korea Times, the update said extreme weather reduced Korea’s third-quarter gross domestic product growth by 0.1% in the 2020s.
What are extreme weather events?
Extreme weather events include floods, hurricanes, heat waves, and droughts. They are drastic instances of weather that harm people or the environment.
Devastating floods in Pakistan and India this past summer and Hurricane Helene across the East Coast in 2024 are two examples.
Extreme weather poses a serious risk to humans — both financially and in terms of health and wellbeing — and the planet.
Why are extreme weather events concerning?
As extreme weather events intensify due to a warming planet, their harm multiplies.
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More intense and prolonged hurricanes increase the risk of property damage or displacement, for example, while longer heatwaves or unexpected frosts make growing conditions difficult for crop farmers.
They typically cause more problems among low-income communities, resulting in more injuries and deaths.
Among the main concerns of extreme weather is how seawater intrusion from flooding caused by hurricanes reduces access to fresh water supplies. That’s not to mention possible damage to sewage networks that can pollute drinking water sources.
A 2024 Utrecht University report stated that 55% of people worldwide don’t have access to clean water. That number will likely go up to 66% by 2100 and will mostly encompass people in the Global South.
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Those numbers are already concerning, and extreme weather further exacerbates the situation.
A smaller, but still upsetting, effect is that autumn leaves may not be as vibrant. Heat waves and drought in the U.K. in 2025 have caused stress among trees, negatively affecting their biological process.
It’s not just a problem in the U.K., though. An expert at Oakland University also observed this possibility.
“The leaves might not be as red,” Scott Tiegs, biological sciences professor at Oakland University, told the Oakland Press about foliage in Michigan. “They might turn earlier.”
How extreme weather events hurt economies worldwide
People in Korea, especially those in outdoor industries, have suffered as the planet warms.
According to the Korea Times, the Bank of Korea’s report said that agriculture and fishing have experienced significant productivity losses as extreme weather halts operations.
Production and maintenance costs are increasing, and as a result of rising prices, the restaurant industry is experiencing a decline in customer demand.
Extreme weather has also slowed or completely halted construction and is harming the forestry and fishing sectors. This can all translate to a loss of jobs, income, and safety for many people.
“Extreme weather events may exert downward pressure on potential growth by causing loss of life and property, damage to production facilities and declines in productivity,” the BOK said, per the Korea Times. “This underscores the urgent need for systematic and preemptive policy responses.”
While addressing the climate crisis may seem costly, inaction will ultimately cost more money. People across the U.S. have been watching insurance costs soar, for example, as insurers withdraw coverage from areas prone to extreme weather conditions.
The continued burning of coal, gas, and oil produces planet-warming pollution, trapping heat in the atmosphere and causing thermometers to rise. It might cost money to switch to renewable energy, but it will cost even more to reverse the polluting effects of dirty fuels.
While one person can’t change a whole country’s GDP, there are still ways to make small changes that add up. Consider investing in clean economy stocks or switching to a greener bank that isn’t financing dirty energy.
Being an advocate for climate policies, as the BOK mentioned, can also make a huge difference.
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