The international credit rating agency Standard & Poor’s (S&P) stated that the declaration of martial law is unlikely to have any substantial impact on South Korea’s national credit rating. At a media seminar jointly hosted by S&P and NICE Credit Rating in Yeouido, Seoul, on the 4th, KimEng Tan, Executive Director of S&P, remarked, “The martial law was lifted within a few hours, and we judge that South Korea’s institutional foundation is solid.” He added that there is no substantial reason to alter the metrics used to assess South Korea’s current credit rating (long-term rated ‘AA’) or to change the rating itself.
Louis Kuijs, another Executive Director of S&P, noted that “some countries like France are already experiencing political conflicts and turmoil,” and although he is not a South Korean politics expert, he believes this incident is not due to a severe disagreement over economic and financial policy direction.
Kuijs further mentioned, “When there is a significant domestic disagreement over economic and financial policies, it makes resolutions difficult and increases uncertainty. However, that is not the case here.” He concluded by saying, “Uncertainty in any form is not desirable, but it seems that a solution can gradually be reached.”
[Photo source: Yonhap News]
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