S. Korea, S and P begin annual consultation meetings

South Korea on Friday began its annual consultation meetings with global rating appraiser Standard and Poor's Global Ratings (S and P) to discuss the country's credit valuation and other agendas, the finance ministry said. Finance Minister Choi Sang-mok met with Kim Eng Tan, senior director of Asia-Pacific sovereign ratings at S and P, in Seoul, as the credit appraiser plans to visit various governmental bodies through Wednesday, according to the Ministry of Economy and Finance. During the meeting, Choi noted that the South Korean economy has been recovering, backed by exports amid stronger global demand for IT products. South Korea's exports extended on-year gains for the 11th straight month in August, driven by strong demand for semiconductors, government data showed earlier. Such a performance is expected to lead to better corporate and household earnings, eventually revitalizing domestic consumption, the minister added. Choi also mentioned that the government plans to offer customized support to l ow-income groups and small business owners to sustain the recovery in domestic demand, along with other efforts to reduce regulations on businesses and create more jobs. Choi further shared details of the government-led "corporate value-up program," which aims to boost the value of local businesses and eliminate the so-called Korea discount, where local shares are traded at prices lower than their fundamentals. In response, S and P noted that the South Korean government's efforts to maintain financial sustainability would help Asia's No. 4 economy retain its credit rating in the future. In April, S and P maintained South Korea's long-term sovereign credit rating at "AA," the third-highest level on the company's table, a position it has held since August 2016, when the rating was upgraded by one notch from "AA-." Source: Yonhap News Agency