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S&P maintains Korea's rating at 'AA,' gives stable outlook

Published: 29 Apr. 2026, 21:08

A digital screen shows the Kospi, dolar-won exchange rate and Kosdaq at a Hana bank branch in Seoul on April 29. [YONHAP]

Global credit appraiser S&P Global Ratings on Wednesday maintained its credit rating on South Korea at “AA,” with a stable outlook.

S&P has kept South Korea's long-term sovereign credit rating at the third-highest level on the company's table of “AA” since August 2016, when it upgraded the rating by one notch from “AA-.”

“The dislocation of the global energy market is a risk to [South] Korea's economy in 2026. However, we expect the country's highly competitive electronics sector and supportive fiscal policy to temper these headwinds,” the agency said in its latest report.

The agency said the policy environment has returned to normal following the election of President Lee Jae Myung in June 2025, adding that the current administration is well-positioned to respond decisively to risks stemming from the global energy market crisis.

Therefore, the agency expected the country's real GDP to remain higher than most other high-income economies over the next three to four years.

The agency also said geopolitical risks continue to weigh on South Korea's sovereign rating.

“However, we do not believe recent developments in North Korea or globally have materially increased the risks of a serious economic or security event on the peninsula,” the agency said.

In an upside scenario, the agency said it could raise South Korea's sovereign rating if it assesses that security and contingent liability risks posed by North Korea have receded.

Yonhap