South Korean economy was expected to grow 3 percent in 2012 due to slowing exports to advanced economies such as Europe, Standard & Poor's said Thursday.

According to an e-mailed report, the global credit rating agency estimated that the South Korean GDP growth will slow to 3 percent in 2012 compared with 3.6 percent in 2011 amid weak demand from developed countries.

The agency noted that global economic uncertainties would result in declining export demand from developed economies including Europe, adding that the slowdown in exports could also weaken growth in domestic demand and lead to smaller gains in income for households.

The S&P estimation was lower than 3.5 percent growth forecast by the International Monetary Fund (IMF) and the Bank of Korea ( BOK) earlier this month.

Touching on household debts, the S&P said that debts owed by households has steadily increased since the global financial crisis, warning that the steadily growing debts could pressure the asset quality of the country's banking system in the event of sharp interest rate hikes and weaker-than-expected economic growth.

The agency noted that debts both in the household and corporate sectors remained high, saying that the South Korean economy had high credit risk given high private-sector leverage especially in the context of the country's per capita GDP.