The dislocation of the global energy market is a risk to Korea's economy in 2026. However, we expect the country's highly competitive electronics sector and supportive fiscal policy to temper these headwinds. Real GDP growth should therefore remain higher than most other high-income economies over the next three to four years. Geopolitical risks continue to weigh on the sovereign ratings on Korea. 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. We affirmed our 'AA/A-1+' ratings on Korea. The outlook remains stable. On April 29, 2026, S&P Global Ratings affirmed its 'AA' long-term and 'A-1+' short-term foreign and local currency sovereign credit
