11 May 2017
Rates & FX View
Challenges Awaiting President Moon as
He Takes the Blue House
Highlights
Highlights
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Presidential Candidate Moon Jae-in emerged victorious as the 19th
South Korean President in a landslide victory.
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Push for structural reforms are likely to remain challenging with a lack
of supermajority from President Moon’s party, alongside sensitivity stemming
from Chaebol reforms given their sheer scale as a proportion of the economy.
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Difficulties may arise for President Moon to implement the KRW10trn
fiscal stimulus, constrained by the legislations, which prescribe very specific
exceptions to which a supplementary budget can be implemented.
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BoK to maintain its neutral monetary policy rhetoric through 2017
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We maintain our neutral duration view on KTBs, while keeping a mildly
bearish view on KRW over the medium term.
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