LG Economic Research Institute has cut its growth outlook for South Korea to two-point-eight percent this year.

The outlook is down by a tenth of a percentage point from its previous forecast announced in July. That's when the target growth rate for the country was raised by as much as zero-point-three percentage points.

The think tank said momentum for economic recovery is weakening in the second half. It added geopolitical tensions related with North Korea’s nuclear issue will also likely slow consumption, investment and exports to China.