Hong Nam-ki "Vaccine Distribution and Gradual Return to Daily Life... Economic Recovery Trend Continues"

Moody's Maintains South Korea's Credit Rating at Aa2
"Aging Population and Rising National Debt Pose Challenges" Warning

Hong Explains "Strengthening Expenditure Management and Establishing Guidelines"

March Annual Consultation Included "Active Fiscal Management" Remarks
Ministry of Economy and Finance Says "'Policy Stance Change' Interpretation Is Excessive"

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki meeting with Marie Dillon, Head of Asia-Pacific, Central Asia, and Africa at Moody's, on the 2nd (local time) at the Hilton Hotel in London, UK. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki met with officials from the international credit rating agency Moody's and stated, "The economic recovery trend will continue with rapid vaccine distribution and phased daily recovery." He added, "We are also pushing efforts to strengthen fiscal soundness."

On the 2nd (local time), Deputy Prime Minister Hong met Marie Diron, Head of Moody's Asia-Pacific, Central Asia, and Africa, at the Hilton Hotel in London, UK, and made these remarks. This was the first face-to-face meeting with an international credit rating agency since the COVID-19 outbreak.

Deputy Prime Minister Hong emphasized, "The recovery trend will continue with rapid vaccine distribution and the implementation of 'With Corona' (phased daily recovery), and we will mobilize all available policies to achieve this year's growth target." Moody's responded to Hong's remarks by saying, "South Korea is one of the few countries expected to have no economic scars from the pandemic."

In May, Moody's maintained South Korea's credit rating at 'Aa2,' the second highest in Asia, while citing aging and increasing national debt as challenges.

Deputy Prime Minister Hong, seemingly aware of concerns about national debt, explained, "South Korea's fiscal soundness is better compared to major countries, but due to expenditure needs arising from aging, climate change response, and increased welfare spending, we plan to promote fiscal stabilization through strengthening total expenditure management, expanding the revenue base, and establishing fiscal rules." A Ministry of Economy and Finance official elaborated on this, saying, "While explaining the general fiscal policy stance, more emphasis was placed on soundness."

Deputy Prime Minister Hong also introduced that South Korea is responding to structural challenges such as climate change and slowing potential growth rate by promoting mid- to long-term growth strategies like carbon neutrality and the Korean New Deal. He predicted that the impact of global supply chain disruptions on the Korean economy would be limited. He emphasized that as a result of efforts to strengthen the competitiveness of the materials, parts, and equipment industry in response to Japan's export restrictions in 2019, visible achievements such as domestic production and import diversification were realized within two years.

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