The credit default risk of South Korea has shot up to a five-month high amid escalating tensions over the shutdown of the Gaeseong Industrial Complex.

According to Bloomberg, the credit default swap(CDS) premium for South Korea's five-year foreign exchange stabilization bonds reached 83 basis points on Thursday in New York, up zero-point-zero-nine percentage points from a day earlier.

The nation’s CDS premium, which measures a country’s credit risks, surged zero-point-28 percentage points this year due to increased volatility in the international financial market and worsening inter-Korean relations.

A CDS is a type of insurance against default on debt by a state or company. A low CDS premium signifies a low probability of default.