(SEJONG = Newsis) Global rating agency Fitch Ratings said on February 14 that the Korean government’s efforts to clarify its public sector debt will heighten transparency and the efficiency of debt management of its public sector.

“Korea is only the fifth nation in the G20 group to announce a consolidated measure of public debt, and the recent measures are yet another reflection of the authorities' reasonable commitment to tackling the high level of SOE debt,” said Fitch Ratings.

“Such measures will lay a foundation for establishing reliable public-debt management policies,” said the agency.

Fitch Ratings remained positive about the Korean government’s mid-to long-term plans for the debt of public institutions. It also explained that the Park administration’s recent public sector reform was the main reason for the agency to upgrade the ratings of Korea’s 12 state-owned enterprises.

“When comparing the fiscal soundness between countries, the focus will be on the general government level and not public sector debt,” said Fitch Ratings.

ahk@newsis.com

Source Text

Source: Newsis (Feb. 14, 2014)

** This article was translated from the Korean.