World's Top 3 Credit Rating Agencies Meeting with Choo Kyung-ho: "Korean Economy Different from the Asian Financial Crisis"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, who is visiting Washington D.C., USA, to attend the G20 Finance Ministers Meeting and the IMF/WB Annual Meetings, shakes hands with Ann Van Praag, Global Head of Sovereign Ratings at Moody's, before a meeting with the international credit rating agency Moody's at the International Monetary Fund (IMF) headquarters on the 13th (local time).
(Photo by Ministry of Economy and Finance)

The three major global credit rating agencies met with Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho and stated that South Korea's external soundness remains favorable, evaluating that the Korean economy is fundamentally different from the 1997 Asian financial crisis period.

On the 13th (local time), Deputy Prime Minister Choo met with Anne van Raaij, Global Head of Moody's, and James McCormack, Global Head of Fitch, in Washington DC, USA. On the 14th, he had a meeting with Douglas Peterson, Chairman of Standard & Poor's (S&P).

At the meeting, Deputy Prime Minister Choo said that the government is managing the economy with a focus on responding to the expansion of global uncertainties and stabilizing prices and livelihoods, and is also promoting structural improvements in trade and current account balances through household debt and real estate market stabilization and strengthening export competitiveness.

He also explained the new government's key policy directions, including private, corporate, and market-centered economic management, structural reforms across the economy and society to enhance growth potential, and the transition to a sound fiscal stance.

The three major credit rating agencies who met with Deputy Prime Minister Choo commonly evaluated that "the recent economic situation in South Korea is fundamentally different from 1997" and that "the favorable view on external soundness remains unchanged." They added, "Despite the expansion of global uncertainties, South Korea has relatively smaller impacts compared to other countries thanks to its strong resilience," and "excellent competitiveness and solid fundamentals are being maintained."

While the three major credit rating agencies showed interest in global supply chain restructuring, North Korea risks, and fiscal rules, they reportedly did not express particular concerns regarding North Korea's recent escalation in provocations.

At a press briefing with accompanying reporters held in Washington DC on the 14th (local time), Deputy Prime Minister Choo said, "The responses from the three major credit rating agencies generally showed unwavering confidence that our economy remains an attractive investment destination," adding, "however, since uncertainties and volatilities may materialize in various forms and potentially expand into negative impacts on our economy, we must monitor more meticulously and maintain a thorough readiness to respond."

On the 14th, Deputy Prime Minister Choo met with Australian Treasurer Jim Chalmers and requested smooth supply from Australia, South Korea's main energy import country, to ensure stable domestic import of key energy sources such as thermal coal and liquefied natural gas (LNG). In particular, Deputy Prime Minister Choo emphasized the importance of stable supply of critical minerals for the growth of the electric vehicle and semiconductor industries and expressed hope to strengthen cooperation with Australia, which is rich in critical minerals.

Washington DC = Reporter Moon Je-won