Current Issues Inquiry at the National Assembly's Political Affairs Committee Full Meeting on the 18th
Financial Services Commission Chairman Kim Byung-hwan stated on the 18th that the current economic situation related to the impeachment is facing difficulties different from those during the two previous impeachment crises.
At the plenary session of the National Assembly's Political Affairs Committee held that morning, in response to a question from Kang Hoon-sik, a member of the Democratic Party of Korea, about how the current situation differs from the two past impeachment phases, Chairman Kim said, "In 2004 (the impeachment crisis of former President Roh Moo-hyun), the external conditions were favorable due to the situation in China, and in 2016 (the impeachment crisis of former President Park Geun-hye), the semiconductor cycle was good." He explained the difficulties of the current economic situation by adding, "Considering external influences, there are risks such as the Trump risk, so the current situation is not easy."
In response, Representative Kang pointed out the seriousness of the current situation, saying, "During the impeachment of former President Park Geun-hye, uncertainty was rather removed, and indicators rose." He especially mentioned the worsening of both investment and consumer sentiment, expressing concern that "it is difficult to have a positive outlook on structural issues in the semiconductor industry caused by the U.S. CHIPS Act and the IRA (Inflation Reduction Act)."
Chairman Kim replied, "It is true that the current situation is not easy," but added, "Foreign investors are watching how Korea overcomes these challenges." He emphasized, "Short-term market stabilization is possible, but management in fundamental aspects will be important."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
