Global credit appraisers warn of potential impact of prolonged political uncertainty
Seoul, Jan 9 (IANS) Major global credit rating agencies agreed on Thursday that the political uncertainty in South Korea has had a limited impact on the economy so far, yet warned of potential challenges if the situation is prolonged, the finance ministry 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 Ministry of Economy and Finance.
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, reports Yonhap news agency.
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.
Meanwhile, President Yoon Suk Yeol’s lawyers said they have filed for an injunction against a second warrant to detain him over his brief imposition of martial law.
Yun Gap-geun and other members of the impeached president’s legal defense team made the remark during a meeting with foreign news outlets, saying the request was filed with the Constitutional Court, along with a request for adjudication on a competence dispute.
The Seoul Western District Court issued the warrant on Tuesday after investigators filed for an extension of their initial warrant that expired the previous day.
An attempt to execute the warrant last Friday failed after Yoon’s bodyguards blocked investigators from entering the official presidential residence.
A second attempt is expected to be made in the coming days.
—IANS
na/
