SEOUL, May 02 (AJP) - Concerns over South Korea’s economic leadership are intensifying following the abrupt resignation of Deputy Prime Minister and Finance Minister Choi Sang-mok, who stepped down Thursday in a bid to avoid impeachment.
His departure threatens to unsettle foreign investors and undermine Seoul’s credibility as it navigates rising domestic uncertainty and mounting trade pressure from the United States.
Choi, a key figure in maintaining policy continuity during a period of political turmoil, leaves at a precarious moment.
Choi and his economic team had played a central role in assuaging concerns from global finance leaders. He worked to reassure foreign investors, finance ministers, and credit rating agencies that South Korea’s institutions remained intact and functional despite the political upheaval.
But Choi’s resignation has reopened questions about Seoul’s ability to sustain that stability.
Analysts warn that the move could erode investor confidence and complicate future assessments from rating agencies, which consider political cohesion a key element of economic credibility. S&P had previously cautioned that persistent political fragmentation could weaken the next administration’s ability to implement economic reforms.
The implications of Choi’s exit extend beyond financial markets.
He had been a leading figure in negotiations with Washington over a wide-ranging framework designed to resolve disputes over tariffs and strengthen cooperation on economic security, investment, and currency policy. The talks, conducted alongside U.S. Treasury Secretary Scott Bessent, were seen as critical to averting a potential trade rift.
Although Trade Minister Ahn Duk-geun will continue to lead discussions on trade, observers say Choi's absence could leave Seoul at a disadvantage in the months ahead.
In a brief farewell statement, Choi expressed regret over his departure. “I am sorry to the public that I am unable to continue performing my duties at a time when domestic and international economic conditions are so grave,” he said.
Kim Beom-seok, the First Vice Finance Minister, will assume Choi’s responsibilities, albeit with less authority.
reporter
Candice Kim
candicekim1121@ajupress.com
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