South Korea economy hit by slowdown

South Korea's economic growth has fallen to a two-year low in the second quarter as exports and capital expenditures shrank due to a slowdown in its largest trading partner, China, and debt-crippled Europe.

The Bank of Korea said today in its preliminary estimate that South Korea's economy expanded 2.4% over a year earlier in the three months ending in June, the lowest growth since the third quarter of 2009.