South Korea's Ministry of Economy and Finance held talks with Moody’s annual sovereign rating consultation mission, with Deputy Prime Minister and Minister Koo Yun-cheol outlining the state of the economy and the government’s policy direction, including an agenda for a major AI transformation and measures to strengthen export and industrial competitiveness. Koo cited 0.3% growth in the first half of last year and a recovery in the second half, resulting in 1.0% growth exceeding the initial 2025 forecast of 0.9%, alongside a stock market record high and first-time exports of USD 700 billion. He highlighted support for growth areas including semiconductors, defence and K-culture, as well as “physical AI” and ultra-innovative technologies such as power semiconductors, backed by workforce, capital and regulatory easing measures, and argued AI adoption could create new jobs through core technologies and new industries. On fiscal and debt management, he described a performance-oriented approach focused on restructuring unnecessary spending, investing in high-performance areas and pursuing structural reforms across regulation, finance, the public sector, pensions, education and labour; Moody’s showed interest in the AI support and industrial competitiveness measures.
Ministry of Economy & Finance (South Korea) 2026-01-30
South Korea's Ministry of Economy and Finance briefs Moody’s annual consultation mission on AI transformation and fiscal strategy
South Korea's Ministry of Economy and Finance discussed with Moody’s during its annual sovereign rating consultation. Deputy Prime Minister Koo Yun-cheol presented the country's economic status and policy direction, emphasizing AI transformation and export competitiveness. Koo reported 1.0% growth surpassing the 2025 forecast, highlighting support for sectors like semiconductors and defence, alongside fiscal strategies for restructuring spending and pursuing structural reforms.