South Korea's Vision for an Ultra-Innovation Economy

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol recently met with Moody's Investors Service to outline the new government's ambitious fiscal strategy. This strategy aims to transition South Korea into an ultra-innovation economy, focusing on strategic industries and fiscal sustainability.

Strengthening Global Partnerships

Koo highlighted the successful conclusion of Korea-U.S. trade negotiations, which is expected to deepen economic ties. He emphasized the importance of cooperation with the U.S. in key sectors like shipbuilding, semiconductors, and secondary batteries to seize new opportunities.

Commitment to Fiscal Sustainability

Addressing concerns about demographic changes, Koo assured that the government would focus on essential areas and restructure unnecessary spending. The goal is to achieve performance-based fiscal management and create a virtuous cycle where economic growth reduces the debt ratio.

Moody's Positive Response

Moody's team agreed with Koo's explanations, noting the end of political turmoil and the potential for structural reforms to boost South Korea's growth rate.