Seoul: Global credit appraiser S and P Global Ratings has maintained its credit rating on South Korea at "AA," with a stable outlook. S and P has retained South Korea's long-term sovereign credit rating at the third-highest level on its table of "AA" since August 2016, when it was upgraded by one notch from "AA-."

According to Yonhap News Agency, the agency highlighted that the dislocation of the global energy market is a risk to South Korea's economy in 2026. However, it expects the country's highly competitive electronics sector and supportive fiscal policy to temper these headwinds. The policy environment has returned to normal following the election of President Lee Jae Myung in June 2025, and the current administration is deemed well-positioned to manage risks from the global energy market crisis.

S and P anticipates that South Korea's real gross domestic product will remain higher than most other high-income economies over the next three to four years. Geopolitical risks continue to weigh on South Korea's sovereign rating, but the agency does not believe recent developments in North Korea or globally have significantly increased the risks of a serious economic or security event on the peninsula.

In a possible upside scenario, S and P indicated it could raise South Korea's sovereign rating if it assesses that the security and contingent liability risks posed by North Korea have receded.