Credit ratings agencies downplay NK risk on S.Korea

Global ratings agencies are not taking the North Korea risk facing South Korea in the wake of the Stalinist country`s power transfer, the South Korean Strategy and Finance Ministry said Sunday.

More than 10 government officials in Seoul spoke to representatives of S&P and Fitch in Singapore Jan. 30 to explain North Korean variables that could affect the South Korean economy, the ministry said.

The Seoul officials at the meeting included Choi Jong-ku, deputy strategy and finance minister for international economic affairs; Yim Woong-soon, deputy head of the North Korea policy planning team at the Foreign Affairs and Trade Ministry; Lee Sang-chul, deputy head of arms control at the Defense Ministry; and Hwang Bong-yeon, director of the situation analysis department at the Unification Ministry.

The South Korean officials have visited Asian branch offices of ratings agencies to give in-depth explanations of North Korea risks since the death of Kim Jong Il late last year.

At the Singapore meeting, the rating agencies are known to have given a favorable response to Seoul`s plan to establish a reunification account under an inter-Korean cooperation fund, saying this will reduce the financial burden of reunification.

constant25@donga.com