{
  "id": 8859656,
  "title": "Korea Investors Service prepares to rate credit in digital finance",
  "url": "https://urgent.news/2026/09/21/korea-investors-service-prepares-to-rate-credit-in-digital-finance",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-21T06:32:03.000Z",
  "source": {
    "name": "The Korea Times",
    "slug": "the-korea-times",
    "url": "https://www.koreatimes.co.kr/economy/cryptocurrency/20260921/korea-investors-service-prepares-to-rate-credit-in-digital-finance"
  },
  "original_language": "en",
  "account": "The Korea Investors Service (KIS), a Moody's affiliate, is forming guidelines to evaluate the credit risks associated with digital financial products as blockchain-based assets and stablecoins gain wider acceptance in the financial industry. In a press conference on Monday, Chung Hyuk-jin, the head of KIS's credit standards division, cautioned that digital financial products could pose risks distinct from traditional ones, even when they share the same credit rating. He explained that the benefits of automation and immediate settlement, such as reduced costs, could be offset by the emergence of novel avenues for disruptions and losses. These risks can originate from platforms, smart contracts, and the settlement mechanisms that facilitate digital transactions. Consequently, KIS believes that assessing digital financial products should encompass technological risks alongside conventional factors like the issuer's repayment ability, the creditworthiness of underlying assets, collateral, and repayment priority. KIS categorizes these risks into four groups: platform risk, smart-contract risk, external risk, and issues related to the representation of legal rights. Stablecoins, a type of digital currency, have been identified as a particular area of concern in this evolving landscape.",
  "summary": "Korea Investors Service (KIS) is developing new criteria to assess the credit risks of digital financial products as tokenized securities and stablecoins become more integrated into the mainstream financial system. The Moody's affiliate said Monday that digital financial products can carry risks that differ from those of conventional products, even when they have the same credit rating. \"While…",
  "key_points": [
    "Korea Investors Service forming guidelines for digital finance credit ratings",
    "Head Chung Hyuk-jin warns of unique risks to traditional credit ratings",
    "Four risk categories identified: platform, smart-contract, external, legal rights"
  ],
  "editors_take": "Korea Investors Service's move to rate digital finance credit risks reflects a recognition that digital products pose unique risks that conventional credit ratings cannot fully capture.",
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "The Korea Times",
        "title": "Korea Investors Service prepares to rate credit in digital finance",
        "url": "https://urgent.news/2026/09/21/korea-investors-service-prepares-to-rate-credit-in-digital-finance-8861748",
        "published": "2026-09-21T06:42:03.000Z"
      },
      {
        "outlet": "CoinDesk",
        "title": "Hana Bank issues South Korea’s first digital bond using Euroclear’s blockchain",
        "url": "https://urgent.news/2026/09/21/hana-bank-issues-south-koreas-first-digital-bond-using-euroclears",
        "published": "2026-09-21T08:49:59.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}