S&P, Moody's, and Fitch Warn of Negative Impact on Foreign Investment if Political Instability Prolongs

Prime Minister and Acting President Choi Sang-mok, concurrently Minister of Economy and Finance, along with Kwon Young-se, Emergency Response Committee Chairman of the People Power Party, and Kwon Seong-dong, Floor Leader, are attending the high-level party-government meeting for emergency economic stabilization held at the National Assembly on the 8th. Photo by the National Assembly Press Photographers Group

The three major global credit rating agencies expressed concerns that prolonged political uncertainty in Korea could negatively impact foreign investment and corporate decision-making.

On the 9th, Choi Sang-mok, Acting Prime Minister and Minister of Economy and Finance, met with senior officials from global credit rating agencies such as S&P, Moody's, and Fitch at the Government Seoul Office to explain the recent political situation and the government's response direction.

This meeting was held one month after the previous one on the 12th of last month and was arranged to explain the changes in Korea's political situation and the government's response direction.

Attending the meeting were Marie Diron, Global Head of Sovereign Ratings at Moody's; James Longsdon, Global Head of Sovereign Ratings at Fitch; and Kim Eng Tan, Head of Sovereign Ratings for Asia-Pacific at S&P.

Acting Prime Minister Choi stated, "We expect political uncertainty to be resolved as Korea's constitution and legal system operate normally," adding, "All national systems in Korea, covering both economic and non-economic sectors, are operating smoothly under the coordination of relevant ministries."

He particularly explained, "Korea's financial and foreign exchange markets are recovering to some extent to their pre-emergency state," and added, "We will continue to ensure market stability through close cooperation among the Ministry of Economy and Finance, the Bank of Korea, and the Financial Services Commission."

Introducing the newly launched ruling-opposition-government policy consultation council, Acting Prime Minister Choi emphasized that important livelihood bills will be promptly processed through the council and that policies for livelihood stabilization and economic revitalization will be smoothly implemented.

In response, the Ministry of Economy and Finance reported that the three global credit rating agencies?S&P, Moody's, and Fitch?highly evaluated the Korean government's swift and transparent communication regarding the current situation.

The credit rating agencies mentioned, "While the current political uncertainty in Korea has a limited impact on the Korean economy, if it prolongs, the negative effects on foreign investment or corporate decision-making cannot be overlooked."

Regarding the ruling-opposition-government policy consultation council introduced by Acting Prime Minister Choi, they added, "We hope that major bills and policies, as well as economic issues, will be smoothly promoted through the council."