Strong external position, with net external assets projected at 7.8% of current account receipts at year-end 2004. Resilient fiscal position, with general government debt projected at a low 32% of GDP at year-end 2004, despite the cost of financial sector restructuring. A resilient economy, which grew an average 6.4% a year in 1999-2003. Serious geopolitical risk stemming from North Korea. A high level of contingent fiscal risk, as a reunification of the peninsula could cost up to 2x-3x South Korea's GDP. Opacity of fiscal and frequent quasi-fiscal activity. The ratings on South Korea are supported by: A strong external position. South Korea has been a net external creditor since 2000, with net external assets projected at 7.8% of current account
