A new report from the Korea Center for International Finance says South Korea is not expected to be named as a currency manipulator in a U.S. foreign exchange rate policy report due next month.

The U.S. designates countries as currency manipulators when they have a trade surplus of over 20 billion dollars, a current account surplus of over three percent of gross domestic product and a certain level of government intervention in the foreign exchange market. 

South Korea meets the first two of those conditions, and has for now narrowly avoided being targeted in the U.S. report.

The center points out South Korea's current account balance and commodity trade surplus with the U.S. have both fallen which can work positively in trade negotiations with Washington. 

However, the report warns Seoul may still face threats over the issue of automotive tariffs.