Moody’s Investors Service, a leading global credit rating agency, announced on Thursday that it has affirmed South Korea’s sovereign credit rating at “Aa2” with a stable outlook.
South Korea has held the “Aa2” rating, the third-highest level in Moody’s rating scale, since December 2015. The agency previously upgraded the rating from “Aa3” at that time.
“The affirmation of the rating reflects South Korea’s robust economic diversity and competitiveness, alongside its effective institutional management in addressing key challenges,” Moody’s stated in its recent report.
The agency forecasts that South Korea’s economy will expand by 1.8 percent in 2026, driven by increasing semiconductor exports benefiting from the global artificial intelligence (AI) boom and stronger facility investment.
“The stable outlook indicates a balance of risks to South Korea’s credit profile, including potential fluctuations in key credit metrics, especially considering the nation’s exposure to global trade,” Moody’s explained.
This economic forecast is slightly more conservative, but generally consistent with projections from other major international organizations and the South Korean government.
The International Monetary Fund (IMF) anticipates a real gross domestic product (GDP) growth of 1.9 percent, while the Bank of Korea (BOK) and the Organisation for Economic Co-operation and Development (OECD) project growth rates of 1.8 percent and 2.1 percent, respectively.
