What did Fitch and Moody’s say about Korea’s 2027 budget proposal?

Fitch said the plan could lead to stronger fiscal outcomes than previously expected and put Korea on a more favorable debt trajectory. Moody’s said it balances fiscal prudence with securing future growth engines.

Why is Korea creating the Future Fund in the 2027 budget plan?

Fitch said the Future Fund will help reduce volatility in Korea’s fiscal revenue by using windfall tax revenue from the semiconductor upcycle. The fund is also meant to support productive investment and long-term growth.

How much is Korea planning to spend in the 2027 budget proposal?

The government said the 2027 budget proposal calls for record spending of 821 trillion won, or 614 billion dollars. It said the plan is meant to address structural challenges and support long-term growth.

Fitch, Moody's offer positive assessment of 2027 budget proposal: gov't

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Summary

Korea’s finance and budget ministries said Fitch Ratings and Moody’s gave positive assessments of the government’s 2027 budget proposal. The proposal calls for record spending of 821 trillion won to address structural challenges and support long-term growth. Fitch said the plan could lead to stronger-than-expected fiscal outcomes and a more favorable debt trajectory. Moody’s said it strikes a balance between fiscal prudence and securing future growth engines.

Key Facts

The government said Fitch expects the 2027 budget proposal to produce stronger fiscal outcomes than previously expected.
Fitch said Korea is expected to be on a more favorable debt trajectory.
Fitch said the Future Fund, to be launched next year with windfall tax revenue from the semiconductor upcycle, could reduce volatility in fiscal revenue.
Moody’s described the 2027 budget proposal as a balance between fiscal prudence and securing future growth engines.
The government said it will continue briefing major credit appraisers and global investors on fiscal policies and long-term growth strategies.

By Yonhap

Published Sep 9, 2026 2:46 pm KST

Budget Minister Park Hong-geun attends a press conference on Korea's budget proposal for 2027 at the Government Complex Sejong, Aug. 28. Yonhap

Global credit appraisers have offered positive assessments of Korea's 2027 budget proposal, the government said Wednesday, stressing overseas institutions have recognized Seoul's efforts to improve fiscal health and pursue long-term growth.

Korea's finance and budget ministries released a joint analysis of recent reports by Fitch Ratings and Moody's Corp., as Asia's No. 4 economy recently announced its 2027 budget proposal calling for record spending of 821 trillion won ($614 billion) to address structural challenges.

According to the government report, Fitch said the 2027 budget proposal is expected to result in "stronger fiscal outcomes than previously expected," noting Korea is expected to be on a "more favorable debt trajectory" as well.

Fitch also said the Future Fund, which will be launched next year using windfall tax revenue from the recent semiconductor upcycle, will help reduce volatility in Korea's fiscal revenue.

Korea's investment in strategic industries, such as artificial intelligence (AI) and semiconductors, could also help enhance the country's growth potential, eventually easing the impact of its aging population, Fitch added.

"The key credit question is whether temporary revenue gains can translate into stronger medium-term growth through effective investment," Fitch was quoted as saying in the government report.

In a separate report, Moody's said the 2027 budget proposal has struck "a balance between fiscal prudence and securing future growth engines," according to the finance ministry.

Moody's also described the Future Fund as a "credit supportive" factor as it partially reduces net government bond issuance.

"Korea plans to continue briefing major credit appraisers and global investors on Korea's fiscal policies and long-term growth strategies," the government said.

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