Fitch, Moody's offer positive assessment of 2027 budget proposal: gov't
Global credit appraisers have offered positive assessments of Korea's 2027 budget proposal, the government said Wednesday, stressing overseas institutions have recognized Seoul's efforts to improve fiscal health and pursue long-term growth. Korea's finance and budget ministries released a joint analysis of recent reports by Fitch Ratings and Moody's Corp., as Asia's No. 4 economy recently…
Credit rating agencies Fitch and Moody's have given Korea's 2027 budget proposal a positive review, according to the country's government. The assessment highlights Seoul's commitment to improving fiscal health and fostering long-term growth. The government shared a joint analysis of reports from Fitch Ratings and Moody's Corp., following Korea's announcement of its 2027 budget proposal, which calls for substantial spending of 821 trillion won ($614 billion) to tackle structural issues.
Fitch stated that the budget proposal is likely to yield stronger fiscal outcomes than initially anticipated, indicating a more favorable debt trajectory for the nation. Moreover, the Future Fund, set to be launched next year with revenue from a recent semiconductor upturn via a windfall tax, will aid in reducing fiscal revenue volatility. Korea's investments in strategic sectors such as artificial intelligence (AI) and semiconductors are also projected to bolster the country's growth potential.
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