Global ratings agency Moody’s has assessed the Moon Jae-in administration's proposed supplementary budget will positively contribute to the country’s potential economic growth if it is effective.
 
In a media release on Monday, Moody’s Vice President Stephen Dick said the South Korean government expects the eleven-point-two trillion won extra budget will raise South Korea’s Gross Domestic Product(GDP) growth by a fifth of a percentage point this year, which would provide more significant support to Korea's credit quality.
 
Noting Seoul’s plan to finance the supplementary budget with increased tax revenues instead of issuance of government bonds, the Moody's vice president expected the South Korean government’s debt ratio to stay below 40 percent of GDP over the next three years.
 
He said the extra budget plan made it clear that the Moon administration is putting its policy priority on resolving the country’s structural economic problems such as high youth unemployment and ageing of the population.