Standard & Poor's on Tuesday maintained South Korea's ratings citing its favorable policy environment, sound fiscal position, and net external creditor position.

Korea has seen general government surpluses in most years since 2000. The actively traded Korean won helps to mitigate risks arising from the foreign-currency indebtedness of the financial sector.

Nonetheless, the chief weaknesses in Korea's credit fundamentals are contingent liabilities and geopolitical risks on the Korean peninsula.

The foreign-currency and local-currency credit ratings were retained at 'A+/A-1' and 'AA-/A-1+', respectively.

Further, the stable outlook indicates that the Democratic People's Republic of Korea will not experience considerable political instability in the coming few years.

However, the agency warned that ratings would be lowered on signs that political instability in the DPRK threatens to trigger a sudden reunification or prolong heightened security tensions on the Korean peninsula.

RTTNews