Containers at a port in Incheon (Courtesy of Yonhap)
Global credit rating agencies warned of looming downward pressure on South Korea’s sovereign credit rating about a month after Asia’s fourth-largest economy was abruptly marred by political chaos following its president’s ill-fated bid to impose martial law.
A political turmoil triggered by President Yoon Suk Yeol’s six-hour martial law, which was followed by his impeachment by the National Assembly, has increased uncertainty in the Korean economy, said senior analysts at S&P Global Ratings and Moody’s Ratings.
“As it drags on, the political crisis is weighing on the (Korea’s) growth outlook,” Louis Kuijs, APAC chief economist at S&P Global Ratings, said in an email interview with the Korea Economic Daily this week. “It is hurting business and consumer confidence and there are signs inbound tourism…
