Samsung's declaration that the failure of its latest flagship galaxy Note 7 will cost the company $5.3bn (£4.34bn) over the next two quarters has left the Bank of Korea (BOK) worried. The BOK on Thursday (14 October) conceded that a crisis of this nature could affect the economy. However, the bank has said that it needs more time to assess the situation.

Lee Ju-yeol, BOK Governor, said that the electronics giant's decision to halt production of the Galaxy Note 7 might weigh in on Korean exports. Samsung's worries were calculated into Thursday's revisions to the BOK's economic forecasts, which include growth and inflation numbers, but the bank could not reflect the most recent changes because of time constraints, according to Reuters

Samsung meanwhile declared that it expected to take a hit to its operating profit of about $3bn over the next two quarters which would bring about $5.3 bn of total losses to the world's leading global smartphone maker.

To try and cover these losses the tech giant has reportedly beefed up production for the Galaxy S7 and S7 Edge, which it expects to re-promote as well. The company is also said to be considering an earlier release for its next flagship, the Galaxy S8 which is due for an early 2017 release.

An analysis by Standard & Poor's Global Ratings, however, said that despite the Note 7 episode Samsung Electronics ratings will not be affected.

"We believe the impact on the ratings will be limited at this stage mainly because of SEC's significant net cash holdings of about $58.3 bn as of June 30, 2016, and strong operating cash flow," said S&P.

Galaxy Note 7 failure impact
Samsung Galaxy Note 7 production halt might hamper South Korea's economic growth, Bank of Korea warns Getty Images