Moody's Investors Service says that.........>

RATINGS: Moody's Investors Service says that Korea's (Aa2 stable) credit profile

balances its very strong fundamentals against a high exposure to event risk

because of persistent geopolitical tensions on the Korean Peninsula. Korea's

broad diversification and high level of competitiveness contribute to its strong

growth performance when compared with its peers. And a very strong institutional

framework bolsters its resilience against potential risks in economic and

financial stability, while the government's sound fiscal position provides scope

for countercyclical support for the economy. In addition to geopolitical risk,

primarily in relation to the threat from North Korea, a primary credit challenge

is the sovereign's long-term economic and fiscal costs brought on by a rapidly

aging population.