Seoul: Global credit appraisers have said that sweeping tariffs by US President Donald Trump’s administration and the political chaos following now-suspended President Yoon Suk Yeol’s martial law are not expected to affect South Korea’s sovereign credit rating, Seoul’s finance ministry said on Sunday.
The assessment was made during meetings between Choi Jong-ku, who serves as South Korea’s ambassador-at-large for international financial cooperation, and officials of Moody’s Investors Service, Fitch Ratings and Standard & Poor’s Global Ratings in Hong Kong and Singapore last week, according to the Ministry of Economy and Finance.
Choi explained the current domestic political circumstances and stressed that political uncertainties have been resolved in accordance with the country’s constitutional and legal systems, reports Yonhap news agency.
“Global agencies have said that South Korea is different from other nations that experienced a downgrade in their sovereign rating due to a political impasse and the subsequent financial difficulties,” the ministry said in a release.
“The U.S.’ high tariffs and demand for more defence contributions will affect the Korean economy to some degree, but they will not be factors that require a sovereign rating adjustment,” it noted.
Yoon declared martial law Dec. 3, which caused political turmoil and affected the foreign exchange and stock markets. The National Assembly voted to impeach Yoon pending a Constitutional Court ruling.
Choi also held an investor relations session in Singapore on Thursday in an effort to reassure investors about the country’s strong economic and financial fundamentals despite political chaos.
The IR session was attended by senior officials of major investment companies, including BlackRock and Pimco.
The ambassador also held talks with a senior official of HSBC Holdings last week, the ministry said, adding he will meet with investors and officials of global financial institutions in New York and London in the coming weeks, the ministry added.
Earlier this month, Fitch said it has reaffirmed South Korea’s sovereign rating at “AA-” with a stable outlook.
(IANS)
