Zhongchengxin International report stated that it has downgraded South Korea's rating outlook from stable to negative, while maintaining the sovereign credit rating at 'AAg'. Zhongchengxin International believes that due to the high economic dependence on foreign trade, the escalating trend of U.S. trade protectionism and intensified competition between China and South Korea in exports will pose downward risks to South Korea's economy and external solvency, and the slowing economic growth trend will also weaken fiscal indicators, posing a challenge to smoothly advancing fiscal consolidation. Additionally, events such as the 'emergency martial law' incident that occurred on the 3rd night, the ongoing controversy surrounding the president, and the decreased policy decision efficiency in the context of the 'small actions, great deeds' pattern all reflect the increasing political and policy-related risks, indicating a rise in risks associated with political and policy matters, while the continuing geopolitical risk on the Korean Peninsula continues to negatively impact South Korea's sovereign credit strength. These factors collectively put pressure on South Korea's sovereign credit level, and Zhongchengxin International will continue to monitor the follow-up developments of the 'emergency martial law' incident and its impact on South Korea's sovereign credit. South Korea's large economic scale, diversified economic structure, strong competitive advantage in manufacturing, strong fiscal strength, and external solvency can still support its current credit rating.