S. Korea's AA2 Rating From Moody's at Risk

The video discusses the assessment of geopolitical risk for Korea, which has been raised from moderate minus to moderate plus due to an increased probability of conflict. The assessment considers the potential economic impact, government finances, and policy-making abilities. A short conflict may have limited credit implications, while a prolonged conflict could lead to significant economic damage and credit downgrades.

What factors would be considered when assessing the duration and extent of a conflict?

In the case of a prolonged conflict, what challenges would policymakers in Korea face?