Hong Nam-ki Promotes Korean Economy Globally... "Knocking on MSCI Developed Markets Index, Strengthening Fiscal Soundness"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is seen answering investors' questions at the Korea Economic Briefing (IR) held at the Corinthia Hotel in London, UK, on the 1st (local time). (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, promoted the solid fundamentals of the Korean economy to overseas investors and credit rating agencies. His appeal that Korea deserves to be included in the Morgan Stanley Capital International (MSCI) Developed Markets Index drew attention.

The most notable point was his declaration to overseas investors on the 1st (local time) that "we will actively re-pursue inclusion in the MSCI Developed Markets Index for the domestic stock market." From January to October this year, foreign investors have sold more than 56 trillion won in the KOSPI, but inclusion in the Developed Markets Index would make it easier to retain their investment sentiment. If the Korean stock market is included in the Developed Markets Index, it is expected that foreign capital of 18 trillion to 61 trillion won will flow in, and the KOSPI index could rise by up to 27.5% to 4035 (Korea Economic Research Institute).

At an investor relations (IR) briefing on the Korean economy held in London, Deputy Prime Minister Hong said, "Considering Korea's economic status and overseas investors' perception of the Korean economy, there is sufficient justification for Korea's inclusion in the MSCI Developed Markets Index," adding, "We plan to actively re-pursue inclusion in the Developed Markets Index and engage in active consultations with MSCI following this briefing."

On the following day, the 2nd (local time), he met with the Asia-Pacific head of Moody's, one of the world's top three credit rating agencies, and stated that Korea plans to properly manage fiscal soundness. He said, "(Korea) will maintain economic recovery due to rapid vaccine distribution and phased return to normal life." He also mentioned, "Efforts to strengthen fiscal soundness are underway."

However, Moody's maintained Korea's credit rating at 'Aa2,' the second highest in Asia, in May, citing aging population and increasing national debt as challenges. Regarding this, Deputy Prime Minister Hong explained, "While Korea's fiscal soundness is favorable compared to major countries, due to expenditure demands 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."

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