Business | President Park impeachment push raises risk to Korea economy
South Korean President Park Geun-Hye speaks during an address to the nation on November 29. Photo: Reuters/Jeon Heon-Kyun
South Korean President Park Geun-Hye speaks during an address to the nation on November 29. Photo: Reuters/Jeon Heon-Kyun

President Park impeachment push raises risk to Korea economy

South Korea's finance ministry is concerned about risks to the economy ahead of impeachment vote on South Korean President Park Geun-hye.

December 8, 2016 10:16 AM (UTC+8)

South Korea’ finance ministry said on Thursday it is concerned about further risks to the economy from “domestic issues”, as parliament prepares to hold an impeachment vote on South Korean President Park Geun-hye.

The ministry did not explicitly point to the deepening political scandal surrounding Park in its monthly assessment of the economy, but said it was concerned domestic issues may result in weaker consumption and investment at a time when many global uncertainties persist.

That would put more pressure on an economy that is struggling with weak industrial production and exports and high levels of household debt.

The report comes a day after Finance Minister Yoo Il-ho cited the uncertain outlook for leadership in Asia’s fourth- largest economy as a risk to growth.

Park’s embattled presidency faces a critical juncture, with parliament expected to hold an impeachment vote on Friday. Even if the motion is passed, it must be upheld by the Constitutional Court, a process that could mean the political crisis will drag on for months.

The ministry said private consumption has rebounded in recent months but largely due to government-led retail promotions.

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