The deterioration in international trading conditions will drag on growth in Korea. Nevertheless, the strong international competitiveness of the country's key exporters will keep external metrics strong. We expect real GDP growth in Korea to remain higher than most other high-income economies. We do not view political developments since the surprise declaration of martial law in December 2024 to have materially weakened institutional support for the sovereign ratings. Geopolitical risks continue to weigh on the sovereign ratings on Korea. However, we do not believe that recent developments in North Korea have materially increased the risks of a serious economic or security event on the peninsula. We affirmed our 'AA/A-1+' ratings on Korea. The outlook remains stable. On April 15, 2025,
