Yoon Seok-yeol: "Issuing Many Deficit Bonds Lowers Credit Rating and Causes Capital Outflow... Real Economy and Finance Become Turbulent"

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] On the 21st, Yoon Seok-yeol, the presidential candidate of the People Power Party, said at the ‘1st TV Debate for the 20th Presidential Election Candidates’ hosted by the National Election Commission, addressing candidate Lee Jae-myung, “You said that national debt is just an accounting figure,” adding, “However, (if a lot of national debt is issued) credit ratings can fall and foreign debt interest rates can rise.”

He continued, “(In this case) wouldn’t domestic holders of national debt engage in panic selling? They would all end up panic selling.” He said, “If this happens, settlements won’t be properly made, creditworthiness will decline, foreign capital will outflow, and both the real economy and finance could become chaotic.”

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