Park will persist with tough reforms in South Korea

Subject

Political developments in South Korea.

Significance

After violent street protests last month against planned labour law and textbook changes, a much smaller demonstration in Seoul on December 5 -- which police had sought to ban -- passed off peacefully. All this comes against the background of a slowing economy and the approach of a parliamentary election next April.

Impacts

• Opposition weakness and division will benefit Saenuri in parliamentary elections next April.
• Any progress at new inter-Korean talks tomorrow will also benefit the ruling camp.
• Even if labour reforms are enacted, economic prospects in 2016 are not propitious.
• A slowing Chinese economy will negatively affect South Korea, though the new FTA with China (effective December 20) will help.