"External conditions are more difficult than in the past impeachment," the Bank of Korea said.

The impact of the past two presidential impeachment cases on the economy in 2004 and 2016 was limited, but now there are warnings that prolonged conflicts could hurt the economy due to the difficulties in external conditions.

The Bank of Korea made the announcement in a press release titled "Evaluation and Response Measures for Financial and Economic Impact After Emergency Security."

The central bank said the past two impeachment phases have boosted financial and foreign exchange market volatility in the short term and dampened consumer sentiment somewhat, but the overall growth rate has been less than shocked.

However, the Bank of Korea explained that this time, difficulties have increased in external conditions, such as increased uncertainty in the trade environment and intensifying global competition.

The BOK stressed that a longer conflict period than in the past could lead to a wider negative impact, adding that the market can only gain confidence if the economic system is operating normally externally, including the passage of an extra budget agreement between the ruling and opposition parties.

The BOK expects the passing of the impeachment to increase predictability of the political schedule and further reduce market volatility, adding that it plans to respond by using all available means with the government to avoid growing volatility.