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S. Korea relatively more susceptible to China's slowing growth: report

All News 14:24 April 10, 2016

SEOUL, April 10 (Yonhap) -- A 1-percentage-point drop in China's economic growth rate could deal a relatively heavy blow to South Korea's economy than that of other countries as it depends heavily on the neighboring Asian country for trade, a private think tank said Sunday.

South Korea's economy will see its growth rate shrink by 0.5 percentage point should China's growth slow by 1 percentage point, according to a report by Hyundai Research Institute.

The projected drop is the third sharpest among major economies analyzed.

Singapore could face the most negative impact from China's slowdown, with its growth rate likely to shrink by 0.7 percentage point. Indonesia came next with a 0.6 percentage point fall.

Behind the relatively sharp drop in growth is South Korea's heavy dependence on China for its trade. China takes up about 25 percent of South Korean exports.

The report put South Korea's China-exposure level to 12.8 percent, which is relatively higher than other Asian countries such as Malaysia, Vietnam and Thailand whose corresponding figures stood at 9.6 percent, 8.6 percent and 7.6 percent.

The report called on South Korea to lower its economic reliance on China as part of efforts to shield itself from possible fluctuations in the world's second-largest economy.

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