Moody’s on Feb. 12 affirmed South Korea’s sovereign credit rating at Aa2 with a stable outlook, citing the country’s economic diversity, institutional strength and export competitiveness despite structural challenges. The agency projected economic growth of 1% in 2025, rebounding to 1.8% in 2026 on stronger semiconductor exports and a recovery in capital spending, with long-term growth stabilizing at around 2%.

Moody’s said general government debt is likely to exceed 60% of gross domestic product by 2030 due to aging-related spending and other mandatory outlays, though it expects reform efforts to achieve moderate success in containing fiscal pressures. It listed further