Moodys and S&P Yet to Change Korea`s Credit Rating

Moodys and Standard & Poors, the world`s top credit rating companies, are not likely to readjust their credit ratings on Korea for the time being.

Gwon Tae-shin, policy coordinator of international affairs at the Ministry of Finance and Economy (MOFE), on a cable TV show yesterday, said, “The government visited the two credit rating firms last month and asked for an upgrade of the nation`s credit rating, but the two firms said in response, ‘the rating will not change with uncertainty factors remaining’.”

Gwon also added, “Moodys is scheduled to visit Korea on its way to visiting China in October, but an upgrade in Korea’s credit rating does not seem likely.”

He emphasized, “Appropriate measures will be taken to stabilize markets when necessary. The recent buy-off of Korean stocks among foreign investors included speculative funds, aiming at benefits from foreign exchange rates. With this in mind, if foreign exchange rates fluctuate excessively, the current limit of 9 trillion won in issuing Foreign Exchange Stabilization Bonds will be increased.”

At the same time, Gwon said, “A foreign investment-friendly environment should be created through abolishing the screen-quota system as well as liberalizing markets of legal services, education, and medical services.” He went on to say, “Comprehensive measures for foreign investment attraction will come out by the year’s end.”

Kwang-Am Cheon iam@donga.com