KOSPI Breaks 2000 Mark in 2 Years

Moody’s Investors Service announced on July 25 that it has upgraded Korea’s credit rating one level to A2 from A3. It has been five years and four months since the rating was upgraded by one step in March 2002.

Supported by the Moody’s rating adjustment, the main KOSPI index broke the 2000-point mark for the first time.

Moody’s said that the upgrading was led by growth potential, a stable macro economy, stable national finance management, and reduced security risk.

However, the rating is still one step below the level that Korea had before the Asian economy crisis.

Moody’s indicated that a prospect of Korea’s rating will be stable.

Moody’s had upgraded the prospect of Korea’s credit rating from stable to positive last April, and started to take steps to raise the rating on July 3.

The KOSPI index closed up 11.96 points or 0.06 percent at a record 2,004.22.

It has been two years and five months since the KOSPI index broke 2000-point mark since the index passed the 1000-point mark on February 28 in 2005 for the fourth time.

The Korean won closed at 913.90 per dollar, which dropped to 0.20 won, its lowest level of the year.

Meanwhile, the Bank of Korea announced on July 25 that second quarter GDP increased by 1.7 percent compared to that of this year’s first quarter, and that it has increased by 4.9 percent compared to the same period last year. 1.7 percent is the highest level of quarterly growth ever since the fourth quarter in 2005.