Global ratings agency Fitch says that South Korea's economy could be heavily weighed down by the heightened tension over North Korea's nuclear weapons program.
 
Fitch Ratings said in a statement on Monday that even without military conflict, further escalation of tensions could have an economic impact on South Korea.
 
It said that disputes with China over Seoul's THAAD antimissile system have already had a negative impact on South Korea through a drop in tourism inflows from China and lower exports of consumer products to China.
 
Fitch said that the end of a long period of domestic political uncertainty and a recovery in electronics exports pushed real GDP growth up to two-point-eight percent year on year in the first half of 2017, but this positive momentum might be halted if friction with the North undermines business and consumer sentiment.
 
Fitch is maintaining South Korea's rating at AA-.