SEOUL, Oct. 27 (Yonhap) — South Korea’s Finance Minister Choi Sang-mok vowed to minimize the pace of its government debt growth through stricter budget restructuring in a meeting with a manager of Moody’s Investors Service, the finance ministry said Sunday.
Choi made the remarks when he met with Marie Diron, managing director of Moody’s sovereign risk group, in Washington, D.C., on Friday (local time).
Moody’s Aa2 sovereign credit rating on South Korea reflects the country’s sound economic fundamentals. In particular, the recent inclusion of the Korean state bonds in the World Government Bond Index shows the government’s efforts to keep its financial status healthy, Moody’s said.
Moody’s has maintained its rating on Korea at Aa2, the third-highest level on the company’s table, since December 2015, with a stable outlook.
The stable rating outlook reflects “limited risks” to the country’s credit profile, as its credit fundamentals will remain exposed to material and long-lasting impediments to global trade, the agency said.
Finance Minister Choi Sang-mok (R) shakes hands with Marie Diron, managing director of Moody’s sovereign risk group, at the World Bank office in Washington, D.C., on Oct. 25, 2024, in this photo provided by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)
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