Stock Prices Rise 16 Points Thanks to Six-Party Talks

The economic impact of the agreement in the six-party talks has started to emerge.

One of the three major credit rating institutions, Fitch Ratings, announced on September 20 that it may revise Korea’s ratings upwards.

If Fitch places Korea’s ratings at A+, a notch higher than the current A, the sovereign credit rating of Korea will be only one grade from AA-, the level prior to the financial crisis in 1997.

Stock prices soared as well.

The Korea Composite Stock Price Index (KOSPI) closed at 1,190.93, up 16.80 points or 1.43 percent since September 16, the final trading day of last week. KOSDAQ also finished up 6.99 points, or 1.3 percent, at 543.59 points.

Standard & Poors (S&P) stated, “We have no plans to upgrade Korea’s ratings since this agreement is not a final conclusion of the North Korean nuclear standoff.”

Wan-Bae Lee legman@donga.com roryrery@donga.com