Finance chief meets Fitch officials for annual consultation

Finance Minister Koo Yun-cheol, center, poses with officials from global credit rating agency Fitch Ratings at the Government Complex Seoul, Thursday. Courtesy of Ministry of Economy and Finance

Finance Minister Koo Yun-cheol met with visiting officials from global credit rating agency Fitch Ratings on Thursday to discuss Korea's economic situation and key policy directions, Koo's office said.

The meeting was part of Fitch's annual consultation with domestic authorities before determining the country's sovereign credit rating, according to the Ministry of Economy and Finance.

During the meeting, Koo noted that the country's real gross domestic product (GDP), a key gauge of economic growth, expanded 1.2 percent in the third quarter from the previous quarter.

He attributed the improvement to the new administration's swift and aggressive policy response, including the distribution of cash handouts, called consumption coupons, and two rounds of supplementary budgets.

Koo added that the economy is at a "turning point" that will shape the nation's growth trajectory for decades, pledging to push ahead with initiatives aimed at fostering new growth engines, the ministry said.

In response, Fitch officials said they appreciated Koo's explanation and that it would help enhance their understanding of the Korean economy and support their evaluation, the ministry said.

The officials also expressed strong interest in Korea's artificial intelligence (AI)-driven transition as its key economic agenda.

Fitch representatives have met with several government institutions, including the finance ministry and the Bank of Korea, during their three-day assessment starting on Tuesday ahead of the rating decision.

Fitch has maintained Korea's sovereign rating at "AA-" since September 2012, when it upgraded the country by one notch from A+, with a stable outlook. The rating is the fourth-highest level on the agency's scale.

The result of the latest credit review is expected to be announced in the first half of next year.