Finance Chief Pledges to Limit South Korea’s Debt Growth in Talks with Moody’s

WASHINGTON: South Korea's Finance Minister, Choi Sang-mok, has committed to curbing the growth rate of the nation's government debt through rigorous budget restructuring efforts. This pledge was made during a meeting with Marie Diron, managing director of Moody's sovereign risk group, held in Washington, D.C., the South Korean finance ministry reported on Sunday. According to Yonhap News Agency, Choi emphasized the importance of maintaining a stable financial status for South Korea, which is currently reflected in Moody's Aa2 sovereign credit rating. This rating acknowledges the country's robust economic fundamentals and includes the recent addition of Korean state bonds in the World Government Bond Index, underscoring the government's ongoing efforts to sustain fiscal health. Moody's has consistently rated South Korea at Aa2, the third-highest level on its scale, since December 2015. The outlook remains stable, a testament to the "limited risks" to the nation's credit profile. The agency noted that while S outh Korea's credit fundamentals are strong, they remain susceptible to significant and enduring challenges to global trade.