Global credit rating agency Moody's Investors Service has lowered South Korea's growth outlook for this year to two-point-seven percent, citing the impact of Russia's invasion of Ukraine.

In its macroeconomic outlook report Thursday, the agency lowered South Korea's outlook by 30 basis points from 3 percent, noting that Russia's invasion of Ukraine has impacted global economy, prompting inflation, financial disruption and security challenges.

It said that heightened geopolitical risks will raise economic costs and hamper business sentiment.

Moody’s also downgraded the growth outlook for the Group of 20 economies from four-point-three to three-point-six percent.

It slashed the U.S.' growth outlook to three-point-seven percent and the Eurozone's to two-point-eight. Russia's outlook was the hardest hit, with a forecast of a minus seven percent contraction, reversing a two percent growth outlook. 

The agency also noted that South Korea and Japan will face supply chain concerns related to chip production and a increasing burden from rising oil prices as they are net importers of oil.