Moody's Investors Service says that.....>

SOUTH KOREA: Moody's Investors Service says that despite slower growth and some

near-term risks, Korea (Aa2 stable) remains highly competitive, and potential

growth remains in line with other highly-rated, advanced industrial countries.

Korea has recently been buffeted by slower economic growth, higher unemployment,

and currency depreciation, among other negative trends. "We still think that

Korea's strong economic fundamentals remain intact, and that the current

negative economic trends are largely cyclical in nature," says Christian de

Guzman, a Moody's Vice President and Senior Credit Officer. In particular,

Korea's extremely diverse economy enhances its shock-absorption capacity. The

largest sector by gross value added is services, reflecting the growth of both

disposable household income and tourist arrivals over the past decade. And even

against the backdrop of both demographic issues related to the rapidly ageing

population and labor market issues, Korea's medium-term growth performance still

exceeds that of other countries with similar ratings.