Credit rating agencies to take feedback from public

Credit rating agencies in Korea will face stricter guidelines from the nation’s top financial watchdog, particularly when they try to change how they calculate their ratings.

The Financial Supervisory Service said Monday that it has revised the operation standards for credit rating agencies in Korea. One major change going into effect today is the procedure they must follow when they implement major changes in their rating methodologies.

If a credit rating agency wants to revise how they calculate credit scores, it must make the changes public one month prior to implementation and collect public opinion about the change. The Financial Supervisory Service said such a practice is the norm in many parts of the world, including the European Union.