Seoul: Finance Minister Koo Yun-cheol held annual consultations with Moody's Investors Service last week, underscoring the need for "bold fiscal input" to support economic growth, the finance ministry said Sunday.
According to Yonhap News Agency, the meeting, which took place on Friday in Seoul, brought together Koo and a credit assessment team from Moody's led by Anushka Shah, vice president of the agency's Sovereign Risk Group. The finance ministry released a statement highlighting the significance of these discussions.
"We will support growth by generating high-productivity investment effects through bold fiscal input," Koo was quoted as saying. His remarks reaffirmed the government's policy direction of enhancing fiscal spending as a counter-cyclical tool to stimulate growth while ensuring long-term fiscal sustainability.
Koo also emphasized efforts to implement "performance-oriented" fiscal management through bold structural reforms, as noted by the ministry. These efforts are aimed at optimizing fiscal strategies to meet both current economic demands and future financial stability.
Based on the consultations, Moody's is expected to announce its updated sovereign credit rating for South Korea within the next two to three months, the ministry reported. Since 2015, Moody's has maintained its credit rating on South Korea at Aa2, the third-highest level on the company's table, with a stable rating outlook.