Seoul: Global credit appraiser Moody's Investors Service announced that it has maintained its credit rating for South Korea at "Aa2," with a stable outlook. This rating, which Moody's has held since upgrading from "Aa3" in December 2015, reflects the country's strong economic diversity and competitiveness, along with robust institutional management amid key challenges.
According to Yonhap News Agency, Moody's latest report indicates that South Korea's economy is expected to grow by 1.8 percent in 2026. This growth forecast is driven by rising semiconductor exports and strengthened facility investment, particularly as the global artificial intelligence (AI) market continues to expand. The stable outlook underscores balanced risks to South Korea's credit profile, including potential fluctuations in key credit metrics due to the country's exposure to global trade.
While Moody's projection is slightly more conservative, it remains largely consistent with estimates from other major institutions and the South Korean government. The International Monetary Fund (IMF) anticipates a real GDP growth of 1.9 percent, the Bank of Korea forecasts 1.8 percent, and the Organization for Economic Cooperation and Development (OECD) predicts a 2.1 percent increase.
The report also noted that over the next decade, South Korea's growth is expected to average around 2 percent annually. This represents a gradual slowdown compared to the late 1990s and mid-2000s, when the country's real GDP grew by approximately 5 percent year-on-year.