The Korean government lowered its economic growth forecast for 2015 from 3.8 percent to 3.1 percent.

Presenting its economic policy direction for the second half of the year, the Ministry of Strategy and Finance said it cut the growth forecast due to falling exports and the effect of the Middle Eastern respiratory syndrome outbreak on spending and tourism.

The ministry also cut its forecast of the employment rate for the year, from 66.2 percent to 66.0 percent.

The expected consumer inflation rate for 2015 was also revised down from 2.0 percent to 0.7 percent.

The ministry said it expected that economic growth for 2016 would be around 3.5 percent, higher than this year.