Global credit rating agencies have assessed that despite the growing political uncertainty in Korea, “Korea's sovereign credit rating remains stable,” the Ministry of Strategy and Finance said on the 13th.
Choi Sang-mok, Deputy Prime Minister and Minister of Strategy and Finance, met with high-ranking officials from major global credit rating agencies, including Roberto Sifon-Arevalo, S&P Global Head of Sovereign Ratings, Marie Diron, Moody's Global Head of Sovereign Ratings, and James Longsdon, Fitch Global Head of Sovereign Ratings, on the evening of the 12th at the government complex in Seoul.
During the meeting, Deputy Prime Minister Choi explained Korea's recent political situation and the government's response direction and reaffirmed unwavering confidence in the Korean economy.
Deputy Prime Minister Choi mentioned to the senior executives of global credit rating agencies that all of Korea's national systems are operating normally, as before, and explained that although there were two instances of impeachment in the past, the impact on the overall economy was limited.
Furthermore, the government intends to actively participate in the economic consultation body between ruling and opposition parties proposed by the opposition party recently, stating that smooth communication and cooperation with the National Assembly on economic issues will continue to be possible.
Deputy Prime Minister Choi emphasized that foreign investors and all economic entities can engage in stable investment and management activities as usual. Additionally, efforts to advance the Korean economy remain ongoing, including plans to expand semiconductor and AI infrastructure, enhance competitiveness in shipbuilding, aviation, and shipping, and support the petrochemical industry.
The three global credit rating agencies (S&P, Moody's, Fitch) evaluated that this incident has allowed them to appreciate Korea's institutional robustness and resilience. Roberto Sifon-Arevalo, S&P Global Head of Sovereign Ratings, stated, “Despite the recent situation, the proper functioning of Korea's national system is the most important part for credit rating agencies,” and noted that “the swift market stabilization measures taken by financial authorities like the Ministry of Strategy and Finance and the Bank of Korea right after the incident are examples of how robust Korea's economic system is.”
Marie Diron, Moody's Global Head of Sovereign Ratings, noted, “We are closely monitoring Korea's political situation,” and added, “The Korean government's active communication efforts in such situations will be very useful for credit ratings.”
James Longsdon, Fitch Global Head of Sovereign Ratings, stated, “There were no issues with Korea's sovereign credit rating even during past presidential impeachments,” and added, “The current situation similarly does not pose a threat to Korea's credit rating.”
An official from the Ministry of Strategy and Finance said, “We plan to continue communicating with global credit rating agencies, foreign investors, and finance ministers of major countries, explaining Korea's political and economic situations and the government's response direction.”