Beef Protests May Hinder Korea’s Economic Growth: Moody`s

Moody’s, a leading global credit rating service provider, stated that prolonged protests over the U.S. beef import deal could hamper the long-term performance of the Korean economy and make foreigners reluctant to invest in Korea. This is the first time for an international credit ratings agency to comment on the ongoing demonstrations against American beef imports in Korea.

“The protests will probably have little effect on the near-term economic outlook, but the long-term performance of the Korean economy could be harmed. The protests may force the Lee Myung-bak government to delay and dilute the partial privatization of state-owned financial institutions," Tom Byrne, senior vice president at Moody`s, was quoted as saying by Reuters on Thursday.

Byrne added that anti-American beef rallies could also endanger the ratification of the free trade agreement with the United States at the U.S. Congress.

crystal@donga.com