Overview

• S&P Global Ratings has upheld South Korea's long-term sovereign credit rating at 'AA,' maintaining a stable outlook.
• The swift reversal of December's martial law declaration and responsive policy measures were credited with mitigating political uncertainties.
• South Korea's economic growth is projected to remain above average for high-income economies, with modest government deficits over the next three to five years.
• Real GDP growth is forecasted at 1.2% in 2025 and 2% in 2026, with per capita GDP expected to rise from under $35,000 in 2025 to nearly $41,000 by 2028.
• Potential security threats from North Korea remain a factor in assessments, though the risk of serious conflict is considered low.