S&P keeps Korea's sovereign rating at 'AA' with stable outlook

Containers are stacked at a port in Busan on April 1. (Yonhap)

S&P Global Ratings on Wednesday maintained South Korea's long-term sovereign credit rating at "AA" with a stable outlook, citing the country's competitive electronics sector and supportive fiscal policy as buffers against mounting global energy market risks.

The US-based credit appraiser has held Korea's rating at "AA" — the third-highest grade on its scale — since August 2016, when it upgraded the country by one notch from "AA-."

"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," the agency said in its latest report.

S&P Global Ratings

S&P noted that South Korea's policy environment has stabilized following the June 2025 election of President Lee Jae Myung, adding that the current administration is well-positioned to respond decisively to risks stemming from the global energy crisis. On that basis, the agency projected Korea's real GDP growth to outpace most other high-income economies over the next three to four years.

Geopolitical risks remain a drag on the rating, the agency said, though it stopped short of flagging any acute escalation. "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," the agency said.

S&P added that an upgrade could be on the table if it determines that security and contingent liability risks tied to North Korea have meaningfully receded.