Announcement: Moody’s – Recovery of the global economy to support the credit quality of Korean companies; but the recovery will diverge across sectors Global Credit Research – April 8, 2021 Hong Kong, April 8, 2021 – ** Profits and financial leverage will improve in most Korean companies, supporting their credit quality and ratings ** But refineries and airlines will continue to face challenges Operating conditions and debt levels will increase in some companies rated with large investments and / or spending on acquisitions. The Moody’s Investor Service says in a new report that higher gains amid the global economic recovery from the coronavirus pandemic will strengthen Korean corporate credit metrics in 2021. But the pace of recovery will be uneven across sectors, depending on exposures final market and supply conditions. “Improving credit metrics at most Korean companies assessed, along with large cash reserves at some, will support their credit quality or at least ease the credit strain resulting from last year’s earnings weakness,” said Sean Hwang, vice assistant president and analyst at Moody’s. “Also, this recovering economic activity will benefit most corporate sectors, certain sectors such as refining and airlines will experience a slower recovery due to continued border restrictions and falling fuel demand. for transportation, “adds Hwang. Significant risks remain for credit conditions, due to the still uncertain global economic recovery and imbalance and a strengthening of commodity prices and the Korean won. The large investments and the increase in debt of the evaluated battery companies and SK Hynix Inc. (Baa2 negative) also present some risk, although it is mitigated by the improvement in profits. Of the 23 private sector companies, Moody’s rates, 16 have stable prospects and seven have negative prospects. All issuers related to the government and their assessed subsidiaries have a stable outlook, except for the Korea District Heating Corporation (A1 positive). Subscribers can access the report “Non-financial corporations – Korea: the economic recovery will support credit quality, but the pace of recovery will be uneven across sectors” at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid= PBC_1269142.NOTE FOR JOURNALISTS ONLY: For more information, call one of our global press hotlines: New York + 1-212-553- 0376, London + 44-20-7772-5456, Tokyo + 813-5408-4110, Hong Kong + 852-3758-1350, Sydney + 61-2-9270-8141, Mexico City 001-888-779-5833, São Paulo 0800-891-2518 or Buenos Aires 0800-666-3506. 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