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In its latest outlook report on the South Korean economy, the global rating agency Moody’s Investors Service said Tuesday, the economy will continue to face headwinds next year due to weak economic growth and trade tensions.

Key Highlights:

“Our outlook is negative. The overall profitability of export-dependent companies deteriorated in 2019 due to a global economic slowdown, but their financial stability weakened as they continue to maintain sizable investment.”

“There is a chance for improvement in 2020, but we believe the rate of improvement will likely be limited.”

“Of 24 South Korean companies rated by Moody’s, 14 now have negative outlooks.”

This “reflects reduced financial buffers amid weak economic conditions, large committed investment or both.”

“Trade disputes are expected to limit corporate profitability, and we expect the tech and chemical industries to be most affected.”

Meanwhile, USD/KRW has reversed half the early spike to 1,170.16 highs, currently trading around 1,168.45, still up +0.20% on the day. The Asian currencies are mostly under pressure this Tuesday on fresh US-China trade pessimism concerning the Phase One trade deal.