South Korea's Ministry of Economy and Finance reported that Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol met Moody’s annual sovereign rating consultation mission in Seoul to discuss macroeconomic conditions and the government’s policy priorities, including an AI-led economic transformation, measures to strengthen export and industrial competitiveness, and plans for performance-oriented fiscal management and structural reforms. Koo cited a recovery in growth momentum during 2025, with 0.3% growth in the first half followed by improvement in the second half and full-year growth of 1.0% above the initial 0.9% forecast, alongside a stock market record high and exports reaching USD 700 billion for the first time. He pointed to semiconductors, defense and cultural exports as growth engines and positioned physical AI and ultra-innovative technologies such as power semiconductors as priorities supported through manpower, capital and deregulation, arguing AI adoption could also create new jobs through industrial upgrading and new industries. On mid- to long-term debt management, the ministry set out a performance-oriented approach to reallocate spending from unnecessary areas to higher-performing priorities, alongside reforms spanning regulation, finance, the public sector, pensions, education and labor. Moody’s team, led by sovereign ratings director Anushka Shah, held consultations from 27 to 29 January with the ministry and other government bodies, the Bank of Korea and the Korea Institute of Public Finance, and showed interest in Korea’s AI support and industrial competitiveness measures.

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