Seoul: Global credit appraiser S and P Global Ratings on Wednesday maintained its credit rating on South Korea at "AA," with a stable outlook.
According to Emirates News Agency, S and 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 agency highlighted potential risks to South Korea's economy in 2026 due to the dislocation of the global energy market. However, it expects the country's competitive electronics sector and supportive fiscal policy to mitigate these challenges.
The agency noted that the policy environment in South Korea has normalized following the election of President Lee Jae Myung in June 2025. The current administration is considered well-prepared to address risks related to the global energy market crisis. S and P projects South Korea's real gross domestic product to remain higher than most other high-income economies over the next three to four years. Despite this, geopolitical risks continue to influence South Korea's sovereign rating.