The Asian Development Bank has slashed its forecast for South Korea's 2015 economic growth to 2.7 percent from 3.5 percent, citing an economic slowdown in China.
  

The revised forecast, published on Tuesday, is lower than a 2.8 percent forecast set in July by South Korea's central bank. The ADB also cut its forecast for China's economic growth this year to 6.8 percent from 7.2 percent.
  

South Korea's economy is reeling from sluggish exports, pressured by a slowing economy in China, and weaker domestic consumption.
  

Developing Asia is now expected to grow at 5.8 percent this year, compared with a previous outlook of 6.3 percent, the ADB said.
  

"Developing Asia is expected to continue to be the largest contributing region to global growth despite the moderation, but there are a number of headwinds in play such as currency pressures, and worries about capital outflows," said ADB Chief Economist Shang-Jin Wei.
  

Last week, the U.S. Federal Reserve delayed a decision to increase its interest rate.
  

The ADB warned that Asian companies with heavy foreign debts would face risks if the U.S. central bank raises its interest rate.
  

"U.S. dollar strength may put Asian companies with large foreign debt at risk," it said. "Over the past few years, Asian corporations have increased their U.S. dollar borrowings to take advantage of low U.S. interest rates."
  

"The rising U.S. dollar now confronts these companies with debt servicing costs that are higher in local currency terms. In addition, tighter liquidity ahead could make refinancing this debt more difficult and expensive," it said.
  

The ADB also revised down its 2016 forecast for South Korea to 3.4 percent from 3.7 percent. (Yonhap)