Citigroup: Yoon Suk-yeol's impeachment case may affect South Korea's economic confidence, national budget, and exchange rate

ChainCatcher news, according to Jinshi reports, Citigroup economists Jin Zhenxu and Cui Zhou stated that the long-term political uncertainty surrounding the impeachment case of South Korean President Yoon Suk-yeol may weaken overall economic confidence and discretionary spending.

They mentioned that if the South Korean legislature fails to pass the 2025 national budget in December, the possibility of the South Korean central bank continuing to cut interest rates in January would increase. They also added that developments in the political situation could lead to more capital outflows and pose an upside risk to the USD/KRW exchange rate.