Economists see impeachment as way forward for South Korea

Parliament’s overwhelming vote on Friday to impeach South Korean President Park Geun-hye lifts some of the political uncertainty clouding the nation’s economic outlook, likely preventing the crisis from worsening in the near term. “Korea has avoided the worst-case scenario with the vote,” said Park Sang-hyun, an economist at HI Investment & Securities in Seoul. “The results have prevented an all-stop in state affairs, and things can improve if the prime minister taking over power makes his stance on economic policies clear.”

Had the impeachment motion been rejected, consumption and corporate investment likely would have plunged as even-angrier protesters returned to the streets, said Lee Sang-jae, an economist at Eugene Investment & Securities in Seoul. Now some calm should be restored at least temporarily, Lee said.

Just hours before the vote, 81 per cent of South Koreans supported Park’s impeachment, according to a poll released by Gallup Korea.