▲ Budget Minister Park Hong-geun enters the venue of a press conference on South Korea's budget proposal for 2027 in the central city of Sejong in this file photo taken Aug. 28, 2026. (Yonhap)

By Kang Yoon-seung

SEOUL, Sept. 9 (Yonhap) -- Global credit appraisers have offered positive assessments of South Korea's 2027 budget proposal, the government said Wednesday, stressing overseas institutions have recognized Seoul's efforts to improve fiscal health and pursue long-term growth.

South Korea's finance and budget ministries released a joint analysis of recent reports by Fitch Ratings and Moody's Corp., as Asia's No. 4 economy recently announced its 2027 budget proposal calling for record spending of 821 trillion won (US$614 billion) to address structural challenges.

According to the government report, Fitch said the 2027 budget proposal is expected to result in "stronger fiscal outcomes than previously expected," noting South Korea is expected to be on a "more favorable debt trajectory" as well.

Fitch also said the Future Fund, which will be launched next year using windfall tax revenue from the recent semiconductor upcycle, will help reduce volatility in South Korea's fiscal revenue.

South Korea's investment in strategic industries, such as artificial intelligence (AI) and semiconductors, could also help enhance the country's growth potential, eventually easing the impact of its aging population, Fitch added.

"The key credit question is whether temporary revenue gains can translate into stronger medium-term growth through effective investment," Fitch was quoted as saying in the government report.

In a separate report, Moody's said the 2027 budget proposal has struck "a balance between fiscal prudence and securing future growth engines," according to the finance ministry.

Moody's also described the Future Fund as a "credit supportive" factor as it partially reduces net government bond issuance.

"South Korea plans to continue briefing major credit appraisers and global investors on South Korea's fiscal policies and long-term growth strategies," the government said.

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