Korea stresses growth, fiscal soundness during talks with Moody's
A screen displays the Moody's logo on the trading floor of the New York Stock Exchange (NYSE) in New York City, Aug. 21. Reuters-Yonhap
The government briefed global credit appraiser Moody's Corp. on the latest developments in the Korean economy and its efforts to pursue both growth and fiscal soundness through next year's budget proposal, the finance ministry said Tuesday.
Moon Ji-sung, deputy minister for international affairs at the Ministry of Finance and Economy, met with Maria Lee, a managing director at Moody's, and outlined the country's budget proposal for next year as well as efforts to improve foreign investors' access to its markets.
Moon highlighted the country's proposed Future Fund, which would be financed in part by windfall tax revenue from the global semiconductor upcycle driven by the artificial intelligence (AI) boom, saying it would prioritize strategic investment over one-off spending and help stabilize public finances.
In response, Moody's offered a positive assessment of Asia's fourth-largest economy, noting Seoul's budget proposal seeks to balance fiscal soundness with efforts to secure future growth engines.
The agency praised Korea's successful issuance of foreign exchange stabilization bonds, with Moon noting strong participation from major investors, including central banks of major economies and international organizations.
The appraiser also welcomed Seoul's efforts to improve foreign investors' access to its foreign exchange and capital markets, with Moon pledging to further lower barriers and promote the internationalization of the won.
The internationalization of the won aims to enable the currency to be freely held, traded and raised outside Korea.