S&P International Rankings is anticipated to keep up South Korea’s credit standing at AA in 2026, citing regular financial development and a manageable fiscal deficit, in response to an inner report obtained by the Korea Financial Every day.
In its newest sovereign replace, the US score company stated its secure outlook for Asia’s No. 4 economic system displays expectations that South Korea will maintain a better common development charge than most superior economies over the subsequent three to 5 years, whereas conserving authorities funds broadly secure.
The confidential report, dated on Oct. 30, is the primary detailed evaluation since S&P reaffirmed South Korea’s AA score in April.
The company pointed to the nation’s credible financial coverage framework, deep international change market and stable exterior steadiness as key credit score strengths supporting the long-term score.
Whereas noting Lee Jae Myung administration’s expansionary fiscal stance, S&P doesn’t anticipate a cloth deterioration in credit score evaluation.
S&P highlighted South Korea’s sturdy industrial base, noting its management in data know-how and shipbuilding, in addition to its rising benefit as US-China tensions reshape world provide chains.
Nonetheless, it warned that slowing world demand and excessive family debt may constrain financial flexibility and weigh on fiscal revenues.
The company forecast South Korea’s inflation-adjusted gross home product (GDP) to increase by 0.7% this 12 months and 1.9% in 2026.
The determine for 2026 is barely above the federal government’s projection of 1.8% and the Financial institution of Korea’s 1.6% forecast.
S&P expects per-capita GDP to rise from $36,200 this 12 months to just about $44,000 by 2028.
In the meantime, South Korea’s present account surplus reached a file $13.5 billion in September, up from $11.3 billion a 12 months earlier, in response to knowledge from the Financial institution of Korea.
The cumulative surplus for the primary 9 months of the 12 months rose 23% to $82.8 billion from a 12 months earlier.
