The government has expressed concerns over a possible drop in exports of intermediate products to China as it assessed the U.S.-China trade dispute is unlikely to be resolved in the near term.

The Finance Ministry said in a report submitted to main opposition Liberty Korea Party Rep. Park Myung-jae on Monday that the trade war between the world's two largest economies is unlikely to be settled soon given wide disagreements on various factors, including security and politics. 

The ministry believes the dispute could pull down global trade and affect financial markets, impacting South Korea’s economy.

China is South Korea’s largest export and import destination, while the U.S. is its second-largest export destination and third-largest import destination. Twenty-seven percent of South Korean exports go to China and 12 percent to the U.S. 

Meanwhile, the ministry said South Korea's own trade row with Japan has had little impact on the domestic economy, citing no reports of damages resulting from Japan’s removal of South Korea from its “whitelist” of trusted trading partners.