Moody's Reduces Anxiety Following President Park's Impeachment
SEOUL, March 11 (Yonhap) -- Moody's Investors Service said the Constitutional Court's decision to oust President Park Geun-hye from office removed political uncertainty in South Korea.
"The conclusion of the impeachment process removes one important element of political uncertainty, allowing a new president to come in and focus on formulating reforms that address Korea's structural challenges," Steffen Dyck, vice president and senior credit officer at Moody's, said in an emailed statement.
But he said the "upside risks" to Moody's growth forecast of 2.5 percent for South Korea this year will be limited "given other domestic and external headwinds such as high household debt, corporate restructuring, growing tensions with China over THAAD, and uncertainties over how the U.S. administration's trade policies will affect Korea."
Upside risk is the uncertain possibility of a gain in investing.
Moody's growth forecast is lower than the 2.6-percent and 2.7-percent growth projected by the South Korean government and its central bank, respectively.
The Terminal High Altitude Area Defense system is an advanced U.S. anti-missile system that Seoul and Washington are pushing to complete installation of in South Korea in a couple of months to better counter growing threats from North Korea.
China has explicitly opposed the system, arguing that its powerful X-band radar could be used against the country. The U.S. has said the system is purely defensive and aimed at intercepting missiles from the North.