South Korea's political uncertainty index has dropped to 1.5, returning to pre-martial law levels following Lee Jae-myung's presidential victory last week, Yonhap News reported Friday, citing the Bank of Korea.
The index had surged to a record 12.8 in mid-December after former President Yoon Suk Yeol's martial law declaration, but has normalized since then. Economic uncertainty also fell to 1.2 on June 4, the report said.
The South Korean central bank compiles the index using media article frequency mentioning both "politics" and "uncertainty." Minor post-election fluctuations are seen as typical and not a cause for concern.
Bank of Korea Governor Rhee Chang-yong noted that political risks no longer considerably affect the won-dollar exchange rate, which rebounded to 1,358.4 per dollar on Thursday, its strongest in seven months.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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