Global rating agency Moody's Investors Service says uncertainty surrounding the geopolitical risks on the Korean Peninsula remains even after a recent détente in realtion to North Korea. 

Christian de Guzman, vice president at Moody’s Investors Service, made the assessment in a media briefing on Wednesday, arguing that geopolitical risk is the main constraining factor for South Korea’s sovereign rating. 

Guzman said that the summit between the United States and North Korea early this month does not restore South Korea’s rating to the level seen before August of last year, when the agency assessed a growing possibility that military conflict could flare up on the Korean Peninsula. 

He said that although the historic summit could ease risks, there is much lingering uncertainty given the significant process to be taken to build a peace regime on the Korean Peninsula.