By Kang Yoon-seung
SEOUL, Sept. 12 (Yonhap) — On Tuesday, Finance Minister Choo Kyung-ho met with a team of Fitch Ratings representatives, including Shelly Shetty, a managing director for the Americas and Asia sovereign rating, who are in Seoul for annual coordination meetings.
At the meeting, Choo expressed his commitment to consistently implement measures to improve and strengthen South Korea’s fiscal soundness. He also expressed gratitude to Fitch for their positive assessments of the government’s budget policies.
The finance minister highlighted the need to increase South Korea’s growth potential by reforming the labor, education, and pension systems, rather than relying on short-term stimulus measures. Choo also noted that the country’s economic recovery is expected to be bolstered by a rebound in exports, particularly semiconductors, and strong consumer spending due to a robust job market.
The finance ministry reported that Fitch concurred with Choo’s assessment of the current state of the South Korean economy. In March, Fitch Ratings reaffirmed South Korea’s sovereign rating at “AA-” with a stable outlook, while forecasting an economic growth of 1.2 percent for this year. The rating for South Korea has been AA- since 2012.
In July, South Korea revised its growth projection for this year to 1.4 percent, a 0.2 percentage point decrease from the 1.6 percent growth outlook released in December.
Fitch will be holding annual meetings with various South Korean organizations, including the Bank of Korea and the unification ministry, until Friday.
Finance Minister Choo Kyung-ho (L) speaks with Shelly Shetty, a managing director at global rating agency Fitch Ratings, in Seoul on Sept. 12, 2023, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)
colin@yna.co.kr
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