AI NewsWaveGlobal Big Three Rating Agencies Reaffirm Stability of Korea's Credit Rating Amid Chip and AI Boom
Key points
- Moody's, Fitch and S&P reaffirm stability of Korea's credit rating
- Chip and AI boom offsets concerns about slowing growth
- Agencies show interest in government's plan for excess tax revenue
The three major global credit rating agencies assessed that the chip and AI boom is supporting the Korean economy. Digital Daily and Chosun Biz reported the news on the 18th. Digital Daily reported that Moody's, Fitch and Standard & Poor's (S&P) assessed that the boom in the chip and AI industries is offsetting concerns about slowing growth, and said in its headline that they reaffirmed the stability of Korea's credit rating.
The two outlets described the assessment in slightly different terms. Digital Daily wrote that the boom offsets concerns about slowing growth, while Chosun Biz wrote that the agencies saw the boom as supporting Korea's economic growth. Both outlets also mentioned external and internal uncertainties such as an aging population and the Middle East war.
According to Chosun Biz, the agencies showed interest in the government's plan for using excess tax revenue, and Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il explained that it is being used to reduce government bond issuance.