Hong Nam-ki Meets with Moody's: "Efforts to Legislate Fiscal Rules Amid South Korea's Economic Recovery"

Video Meeting with Moody's Global Head... "Clear Recovery Trend in Korean Economy"

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated to the international credit rating agency Moody's, which inquired about South Korea's fiscal management plan, that "we will continue to make efforts to stabilize fiscal conditions through the legalization of fiscal rules, restructuring of expenditure, and expansion of the revenue base."

The Ministry of Economy and Finance announced on the 31st that Deputy Prime Minister Hong held a video meeting the day before with Alastair Wilson, Global Head of Sovereign Ratings at Moody's, to discuss these matters.

Moody's conducted its annual credit rating consultation with South Korea from the 25th to the 30th. This consultation is the first to be held with a credit rating agency this year.

Regarding fiscal management measures, Deputy Prime Minister Hong said, "Compared to other advanced countries, South Korea's key indicators such as the national debt-to-GDP ratio are relatively favorable," and added, "This year, we plan to maintain active fiscal operations focusing on overcoming the crisis and economic recovery."

He further stated, "This year, the Korean economy is showing a clear recovery trend centered on exports and investment," and "domestic demand and employment are also expected to gradually improve."

Regarding domestic demand, he emphasized that although face-to-face service industries continue to suffer due to social distancing measures related to COVID-19, goods consumption has exceeded pre-COVID-19 levels, and consumer sentiment has recently turned optimistic for the first time in 14 months.

He also explained that the decrease in the number of employed persons in February narrowed to half compared to January, and employment indicators are expected to show a clearer recovery trend in March.

Deputy Prime Minister Hong stated that the government will provide comprehensive support to sustain a rapid and strong economic recovery flow in future policy responses. He particularly emphasized focusing on inclusive recovery that reduces polarization and social disparities.

This content was produced with the assistance of AI translation services.