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Global credit agencies say political uncertainty in Korea has limited economic impact, warn of future risks

Published: 10 Jan. 2025, 11:22

Acting President Choi Sang-mok speaks during virtual meetings with global credit appraisers at his office in Seoul on Dec. 13, 2024. [MINISTRY OF ECONOMY AND FINANCE]

Major global credit rating agencies agreed Thursday that the political uncertainty in Korea has had a limited impact on the economy so far, yet warned of potential challenges if the situation is prolonged, the Ministry of Economy and Finance said.

Moody's Investors Service, Fitch Ratings and Standard & Poor's Global Ratings shared the assessment during separate virtual meetings with acting President Choi Sang-mok, according to the Finance Ministry.

The agencies evaluated the immediate economic impact of the current political situation, stemming from President Yoon Suk Yeol's brief declaration of martial law on Dec. 3 and his subsequent impeachment, is minimal.

However, they warned prolonged instability could deter foreign investment and influence corporate decision-making if the situation continues.

Choi assured the agencies that uncertainties will soon be resolved through the country's constitutional and legal systems.

He also emphasized the government's commitment to ensuring that major economic policies and legislative agendas are smoothly handled through a consultative body with the National Assembly.

Choi, who doubles as deputy prime minister for economic affairs, held similar meetings in early December before assuming interim leadership.

Yonhap