Comments by Fitch Ratings on the matter
- Summit meeting does not eliminate risks associated with military stand-off
- Process of normalising relations is likely to be lengthy and unpredictable
- Long-term stand-off results in geopolitical risks to South Korea's sovereign balance sheet
- As there is also the possibility of reunification costs arising over the long-term
- Unclear whether the summit signals the start of a permanent, structural easing of geopolitical tensions
- Outcome of diplomatic activity in the coming months is hard to predict
- Tensions could re-escalate quickly if US feels that the diplomacy is not achieving its aim of denuclearisation
Further comments being thrown out on the summit meeting between South and North Korea last week. Moody's also shared some of their views earlier here.
