A wealthy and diversified economy with above-average growth prospects. Tensions on the Korean peninsula have receded in 2018 with the constructive engagement of North Korea vis-à-vis the U.S. and South Korea. Our institutional assessment on Korea continues to be weighed by the potential external security threats posed by North Korea. South Korea's record of steady economic growth has propelled a well-diversified and prosperous economy. We do not envisage the U.S.-China trade fiction to have a significant impact on Korea's growth prospects. Strong track record of policymaking has delivered sustainable public finances. External metrics remain very strong and anchor the sovereign's credit quality. We expect Korea to maintain fiscal surpluses in the near term, albeit at lower levels as President Moon's
