The country's credit default swap(CDS) premium, an indicator of international credit standing, hit a five-year high amid rate hikes by major economies and the nation's growing trade deficit.

According to the Korea Center for International Finance(KCIF) on Tuesday, the CDS premium for the five-year foreign exchange stabilization bond stood at 70 basis points as of Monday, up four basis points from the previous day.

At 70 basis points, the premium hit its highest since 70-point-seven posted in November 2017.

CDS premiums for Samsung Electronics rose to 67-point-83 basis points, 74-point-94 basis points for Hyundai Motor and 71-point-42 basis points for KT Corporation.

A CDS is a financial derivative product that compensates for losses incurred when a nation or a company that issued bonds defaults on its debt. A higher CDS premium implies an increase in a nation's default risk.