Seoul: Global credit rating agency S and P Global Ratings has projected that South Korea's economy will grow by 2.3 percent next year, indicating that the country's most challenging period is likely "in the rear-view mirror."

According to Yonhap News Agency, Park Jun-hong, director and lead analyst for Korean corporate ratings at S and P Global Ratings, stated at a seminar in Seoul that while overall credit conditions will likely remain tough, some companies are demonstrating strong performance. This has led to an anticipation of a modest improvement compared with 2025. Park's assessment is based on improving conditions in the global macroeconomy and eased tariff pressures, following a trade deal reached between Seoul and Washington in October.

The credit rating agency expects performances across key industries to diverge next year. Strong results are projected in the semiconductor sector, while chemical companies are expected to face challenges due to oversupply and slower-than-expected restructuring.

S and P also noted that U.S. policy changes could affect the performances of local firms, while the ongoing trade war between the United States and China could provide new business opportunities for Korean companies.