Short-term economic stability expected while external conditions remain a variable

[Anchor]

Following the passage of the impeachment motion, there are cautious expectations that the financial market situation will stabilize.

However, the impeachment situation is ongoing, and uncertainties surrounding external conditions, such as the launch of Trump's second term, remain.

Kim Jin-hwa reports.

[Report]

The day after the impeachment motion passed in the National Assembly, a meeting focused on the economy was held.

This was to quell the anxiety triggered by the martial law and impeachment situations.

[Choi Sang-mok/Deputy Prime Minister and Minister of Economy and Finance: "Our economy is once again being put to the test. The economic team will mobilize all capabilities from both the public and private sectors to manage the economy as stably as possible."]

After the impeachment vote failed on the 7th, our stock market lost momentum on Monday, and the value of the won plummeted.

In this situation, the passage of the impeachment motion is expected to reduce uncertainties regarding the political vacuum in the short-term.

[Park Sang-hyun/iM Securities Researcher: "I think the major uncertainties have been somewhat alleviated for now. The recent atmosphere of the U.S. stock market continuing its rally to all-time highs is also likely to have a somewhat positive effect on the domestic stock market..."]

The problem is the external environment that has significantly changed compared to the past two impeachment situations.

In previous impeachment periods, the special relationship with China and the semiconductor boom helped avoid export sluggishness, but now we are facing a situation of domestic sluggishness and a slowdown in export growth.

Additionally, the incoming Trump administration has hinted at strong protectionist measures.

With difficulties in consumption, investment, and exports, the only support left is said to be fiscal and monetary policy.

[Joo Won/Director of Economic Research at Hyundai Research Institute: "The possibility of a sharp decline in growth rates is highest when both exports and domestic demand worsen. In such cases, there needs to be a shift in the government's fiscal policy and the Bank of Korea's monetary policy to a stance that stimulates the economy..."]

As the government has stated it will communicate more closely with the National Assembly, attention is also focused on the fiscal authorities' stance regarding the supplementary budget proposal put forth by the opposition leader.

KBS News, Kim Jin-hwa.