The OECD on Thursday downgraded its growth outlook for South Korea's economy for this year to 2-percent, amid a slowdown in global trade.
The organization's latest outlook represented a drop from its previous forecast of 2.1 percent in September.
The report said economic growth will remain subdued in South Korea, as the global slowdown and trade tensions hold back exports, while high uncertainty weighs on investment.
The OECD also said a gradual recovery in global demand for semiconductors, and expansionary fiscal policy will support the economy.
Currently, semiconductors account for nearly a fifth of South Korea's exports.
The OECD also expects the Bank of Korea to further ease monetary policy in 2020,.. as headline inflation will remain below the 2-percent inflation target.
This comes as the BOK cut its benchmark interest rate by a quarter percentage point to 1.two-five percent in October, a low not seen since June 2016.
Despite the cut in South Korea's growth outlook, the OECD left its outlook for 2020 unchanged, predicting the economy would grow two.three percent.
Lee Seung-jae, Arirang News.