Global Credit Rating Agencies Caution Against Extended Political Instability
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Seoul, Jan 9 (NationPress) Prominent global credit rating agencies concurred on Thursday that the political uncertainty in South Korea has had a limited effect on the economy up to now, but issued warnings about possible challenges if this situation continues, as reported by the finance ministry.
Moody's Investors Service, Fitch Ratings, and Standard & Poor's Global Ratings conveyed this assessment during distinct virtual discussions with acting President Choi Sang-mok, according to the Ministry of Economy and Finance.
The agencies assessed that the immediate economic repercussions of the ongoing political climate, which arose from President Yoon Suk Yeol's brief martial law declaration on December 3 and his subsequent impeachment, are minimal, as stated by Yonhap news agency.
Nevertheless, they cautioned that prolonged instability may hinder foreign investment and shape corporate decision-making if the uncertainty continues.
Choi reassured the agencies that the uncertainties would soon be resolved through the nation's constitutional and legal systems.
He also highlighted the government's dedication to ensuring that key economic policies and legislative agendas are effectively managed through a consultative body with the National Assembly.
Choi, who also serves as deputy prime minister for economic affairs, conducted similar meetings in early December prior to taking on interim leadership.
Meanwhile, President Yoon Suk Yeol's legal representatives announced they have sought an injunction against a second warrant for his detention related to his brief imposition of martial law.
Yun Gap-geun and other members of the impeached president's defense team made this statement during a meeting with international media, indicating that the request was submitted to the Constitutional Court, alongside a request for adjudication on a competence dispute.
The Seoul Western District Court issued the warrant on Tuesday after investigators requested an extension of their initial warrant, which expired the previous day.
An attempt to execute the warrant last Friday was unsuccessful after Yoon's bodyguards obstructed investigators from entering the official presidential residence.
A second attempt is anticipated in the coming days.
