Bulletin: Impeachment Of President Park Does Not Affect South Korea's Credit Fundamentals

SINGAPORE (S&P Global Ratings) Dec. 12, 2016--S&P Global Ratings said today that the impeachment of President Park Geun-hye does not have a material effect on the sovereign credit rating on the Republic of Korea (South Korea; AA/Stable/A-1+). Although the political uncertainty could remain a distraction to policymakers for some time, we believe the effective Korean bureaucracy will keep the government running smoothly. On Dec. 9, 2016, lawmakers in South Korea's National Assembly voted overwhelmingly to impeach President Park over an influence-peddling scandal. The constitutional court has up to 180 days to consider the motion. Once the court ratifies the vote, a presidential election must be held within two months. Prime Minister Hwang Kyo-ahn will serve as acting president in the

...SINGAPORE (S&P Global Ratings) Dec. 12, 2016--S&P Global Ratings said today that the impeachment of President Park Geun-hye does not have a material effect on the sovereign credit rating on the Republic of Korea (South Korea; ##/Stable/A-1+). Although the political uncertainty could remain a distraction to policymakers for some time, we believe the effective Korean bureaucracy will keep the government running smoothly. On Dec. 9, 2016, lawmakers in South Korea's National Assembly voted overwhelmingly to impeach President Park over an influence-peddling scandal. The constitutional court has up to 180 days to consider the motion. Once the court ratifies the vote, a presidential election must be held within two months. Prime Minister Hwang Kyo-ahn will serve as acting president in the interim period. We envisage potential delays in the passage of legislation as South Korea enters this period of political uncertainty. However, we do not expect the uncertainty to result in material changes to...

Bulletin