Global credit rating agency Moody’s maintained South Korea’s sovereign credit rating of Aa2 with a stable outlook.

Moody’s said in its report on Thursday that the rating reflects South Korea's very high degree of economic diversity and competitiveness, as well as continued institutional management of key challenges.

It also accounted for structural issues stemming from population aging, rising government debt and geopolitical risks.

Aa2 is the third-highest rating on the agency’s table, below Aaa and Aa1.

Moody's projected that the South Korean economy will grow one-point-eight percent this year as semiconductor exports continue to rise amid the global artificial intelligence upcycle and as facility investment strengthens.