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    S Korean President Election Boosts Prospects for Nation’s Credit Rating - Fitch

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    South Korea’s newly elected President Moon Jae-in election increases positive developments for the nation’s future credit rating, Fitch Ratings said in a press release on Wednesday.

    WASHINGTON (Sputnik) — Pledges by South Korea’s newly elected President Moon Jae-in to boost transparency and tackle corruption represent positive developments for the nation’s future credit rating, Fitch Ratings said in a press release on Wednesday.

    "These issues were a key part of Mr. Moon's election platform and the broad public support for change suggests there are reasonable prospects for progress," the release stated.

    The political crisis that ended with the impeachment and arrest on corruption charges of the previous president, Park Geun-hye, did not affect South Korea’s sovereign rating (AA-/Stable), in part because the nation’s political institutions allowed an orderly and constitutional resolution, the release explained.

    Nevertheless, Fitch said the scandal highlighted significant weaknesses confronting the new president, especially close ties between the government and giant conglomerates, known as chaebols, which dominate South Korea’s economy.

    Moon's election also offers the prospect of improved relations with North Korean, which could lead to the reopening of a joint industrial complex north of the divided peninsula’s border, which was closed in 2016, according to the release.

    Related:

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    Tags:
    corruption, Fitch, Park Geun-hye, Moon Jae-in, South Korea
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