Choi Sang-mok, acting President and Minister of Economy and Finance, said on the 14th that 'the Korean economy is being operated stably based on a solid national system' to the international credit rating agency Standard & Poor's (S&P).
On the same day, Choi met with the S&P annual consultation delegation at the Seoul Government Complex in Jongno-gu and noted, 'Korea is working to secure future growth engines such as artificial intelligence (AI), biotech, and robotics.'
The delegation consisted of KimEng Tan, S&P's head of country credit ratings for the Asia-Pacific region, Andrew Wood, S&P's director of country credit ratings, and Kim Dae-hyun, S&P's director responsible for credit ratings on financial institutions.
Choi introduced the recent revision bill for the Restriction of Special Taxation Act, which passed the National Assembly, and a 50 trillion won 'Advanced Strategic Industry Fund,' according to the Ministry of Economy and Finance.
Choi stated that 'We are doing our utmost to turn the changes in the global trading environment caused by the tariff measures of the Trump administration into an opportunity factor for the Korean economy,' adding, 'We continue to engage in close communication between authorities to seek ways for both Korea and the United States to achieve mutual benefits by actively identifying collaborative tasks in areas of high interest to the U.S., such as shipbuilding and energy.'
In response to S&P's inquiry about Korea's polarization phenomenon, they answered, 'As a result of focusing policy capabilities on strengthening social safety nets along with strong expenditure restructuring efforts since this government took office, income distribution indicators have continuously improved.'
'However, there are aspects where perceived inequality has not improved significantly due to deepening asset inequality and reduced opportunities for class mobility,' they added, explaining, 'We are pursuing structural solutions to enhance social mobility, such as increasing the economic participation rate of the youth, expanding educational opportunities, strengthening the foundation for asset formation, and reforming labor and pensions, rather than simply resolving this through fiscal input.'
The S&P delegation assessed, 'While the political uncertainty in Korea increased due to the state of emergency at the end of last year, at this point, three months later, the national system has recovered rapidly,' stating, 'The impact on the credit rating at this point will be limited.'
'Korea's fiscal soundness is at a solid level,' they remarked, adding, 'External soundness, based on sufficient foreign exchange reserves, net foreign assets, and a steady surplus flow in the current account, is the most critical factor supporting our country's high credit rating.'