S&P: "Korea's National System Stable... Limited Impact on Credit Rating"

The annual consultation team from the international credit rating agency Standard & Poor's (S&P) stated in a meeting with Acting President and Deputy Prime Minister for Economy Choi Sang-mok, who is also the Minister of Economy and Finance, that the impact of political uncertainty on the credit rating is expected to be limited.

According to the Ministry of Economy and Finance on the 14th, Acting President Choi held a meeting with the S&P annual consultation team at the Government Seoul Office in the morning. S&P emphasized, "Although political uncertainty in Korea increased due to the martial law situation at the end of last year, the national system quickly recovered," and "At this point, the impact on the credit rating will be limited."

S&P evaluated Korea's fiscal soundness as robust. They added, "A sufficient level of foreign exchange reserves, net external assets, and a stable current account surplus flow are the most critical factors supporting Korea's high credit rating."

Acting President Choi emphasized that the economic system is operating stably. He also introduced the amended Restriction of Special Taxation Act (K-Chips Act) and the 50 trillion won scale Advanced Strategic Industry Fund passed by the National Assembly, stating, "We are actively striving to maintain the global competitiveness of our semiconductor industry and secure future growth engines such as artificial intelligence (AI), bio, and robotics."

He further highlighted policy efforts to seize opportunities arising from changes in the global trade environment under the second Trump administration. Acting President Choi said, "We are continuing close communication between authorities to explore mutually win-win measures between Korea and the United States, including actively identifying cooperation projects in areas of high U.S. interest such as shipbuilding and energy."

When S&P inquired about Korea's polarization phenomenon, Acting President Choi responded, "As a result of focusing policy capabilities on strengthening the social safety net along with strong expenditure restructuring, income distribution indicators have continuously improved."

However, he added, "Perceived inequality has not improved significantly due to deepening asset inequality and reduced opportunities for social mobility," and "We are seeking structural solutions to improve social mobility, such as increasing youth economic participation rates, expanding educational opportunities, expanding the asset formation base, and reforming labor pensions, rather than relying on fiscal input."

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