SEOUL, Oct. 27 (Yonhap) – South Korean Finance Minister Choi Sang-mok vowed to minimize the pace of increase in government debt through stricter budget restructuring in a meeting with Moody’s Investors Service managers. The Ministry of Finance announced on Sunday.
Choi made the remarks on Friday (local time) in Washington, D.C., during a meeting with Marie Dillon, managing director of Moody’s Sovereign Risk Group.
Moody’s Aa2 sovereign rating for South Korea reflects the country’s sound economic fundamentals. In particular, Moody’s said the recent inclusion of Korean government bonds in the World Government Bond Index shows the government’s efforts to maintain a sound fiscal position.
Since December 2015, Moody’s has maintained South Korea’s rating at Aa2, the third highest on its rating scale, with a stable outlook.
The agency said the stable rating outlook reflects “limited risks” to the country’s credit profile, as the country’s credit fundamentals remain subject to significant and long-term obstacles to global trade.
Minister of Finance Choi Sang-mok (right) shakes hands with Marie Dillon, managing director of Moody’s Sovereign Risk Group, at the World Bank office in Washington, DC, on October 25, 2024. Photo provided by Keizai Sangyo. Department Finance. (Photo not for sale) (Yonhap News)
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