South Korea’s slow growth risks credit downgrade


Trade woes: An employee arranges a scarf at a store inside Jeju Shinhwa World resort. South Korea’s export-dependent economy may suffer from more changes in the global trading regime, sparked by the US administration’s imposition of tariffs. — Bloomberg

SEOUL: South Korea’s weakening growth trajectory could eventually impact its sovereign credit rating, according to a senior analyst at S&P Global Ratings.

“The South Korean economy has been slowing down for various reasons,” Kim Eng Tan, managing director of Asia-Pacific sovereign ratings at S&P Global Ratings, said at a press conference held in central Seoul, discussing growth deceleration and rising household debt.

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