S. Korea stresses growth, fiscal soundness during talks with Moody's

Seoul briefed global credit rating agency Moody's on the latest economic developments and its plans to pursue growth and fiscal responsibility in the upcoming budget, according to the South Korean finance ministry. Deputy Minister for International Affairs Moon Ji-sung met with Moody's Managing Director Maria Lee to discuss the country's budget proposal for the next year and efforts to enhance access for foreign investors to its markets.

Moon emphasized the government's Future Fund, financed partly by windfall taxes from the semiconductor surge spurred by artificial intelligence, which would prioritize strategic investment over short-term spending to stabilize public finances. In response, Moody's expressed a favorable view of South Korea, the world's fourth-largest economy, praising its budget proposal for balancing fiscal responsibility with strategies to secure future growth.

The agency commended the successful issuance of foreign exchange stabilization bonds, noting significant participation from major international investors such as central banks and global organizations. Moody's also welcomed South Korea's initiatives to expand access to its foreign exchange and capital markets, with the aim of allowing the won to be freely held, traded, and raised outside the country.