Moody’s Praises South Korea’s Debt Curb as Credit-Positive

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  1. 1. Summary

    Moody’s praises Korea’s plan to reduce national debts with excess profit from AI boom. The government expects the national debt-to-GDP ratio to decline from 51.6% in 2026 to 48.3% in 2027, before rising slightly to 49.0% by 2030 thanks to new budget plan to suppress bond issuance with excess profit from AI boom. This is a moderation from Moody’s previous 2030 projection of 59%.

    2. How is this related to sub

    (1) Fiscal Policy: Korean government budget policy is relatively conservative, focusing on debt reduction whenever there is surplus.

    (2) AI boom: AI boom increased the tax revenue significant.

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