Research Update: Korea 'AA/A-1+' Ratings Affirmed; Outlook Stable

We expect Korea's economic growth to increase to 2.2%, from 1.4% in 2023. Over the next three years, real GDP growth should be sustained at levels close to or above 2% annually. This relatively strong performance, for a high-income economy, should allow the government to shrink its general government deficit from about 1% of GDP in 2024. Geopolitical risks continue to weigh on the sovereign ratings on South Korea. However, we do not believe that recent developments in the Democratic Republic of Korea (North Korea) have materially increased the risks of a serious economic or security event on the peninsula. We affirmed our 'AA' long-term and 'A-1+' short-term foreign and local currency sovereign credit ratings on Korea. The outlook on

...- We expect Korea's economic growth to increase to 2.2%, from 1.4% in 2023. Over the next three years, real GDP growth should be sustained at levels close to or above 2% annually. - This relatively strong performance, for a high-income economy, should allow the government to shrink its general government deficit from about 1% of GDP in 2024. - Geopolitical risks continue to weigh on the sovereign ratings on South Korea. However, we do not believe that recent developments in the Democratic Republic of Korea (North Korea) have materially increased the risks of a serious economic or security event on the peninsula. - We affirmed our '##' long-term and 'A-1+' short-term foreign and local currency sovereign credit ratings on Korea. The outlook on the long-term rating remains stable....

Research Update