• Fitch - tension with North Korea is an important reason why South Korea's rating is one notch below outcome of our sovereign rating model

Market news

10 May 2017

Fitch - tension with North Korea is an important reason why South Korea's rating is one notch below outcome of our sovereign rating model

  • Would not expect korean exports to China to drop sharply, even if thaad remains in place

  • Korea's general government debt of 38.7% of gdp is slightly below 'aa' median of 39.7%

  • Fiscal policy might become more expansionary under new government, given Moon's pledge to use stimulus to create jobs

  • Moon likely to adopt more conciliatory stance towards N. Korea but S. Korea's influence over security situation appears to have weakened in recent months

  • Political crisis that ended with impeachment and arrest on corruption charges of previous president did not affect sovereign rating

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