The Korea Development Institute has lowered its forecast for Korea's growth for this year from 3.6 percent to 2.5 percent. The state-run think tank also cut the country's growth outlook for next year from 4.1 percent to 3.4 percent.

The KDI blamed sluggish exports and domestic consumption amid increasing uncertainties in the global economy, especially the eurozone debt crisis.

Most domestic and foreign think tanks agree that Korea's economy will grow around 2 percent this year and about 3.5 percent next year. The three biggest international credit rating agencies, which have recently upgraded Korea's sovereign credit ratings, also predict about 2 percent growth for Korea.