The country is one of the top 10 exporters in the world with significant trade linkages to China. Last year, South Korea struggled as exports slumped 7.9 percent on year while imports fell 19.2 percent. The drop in trade was the steepest since 2009.
Goldman said credit growth will likely decelerate in Korea, which in turn will have an impact on earnings. The bank expects the Kospi to return about 6 percent in dollar terms this year, while the economy is estimated to grow 2.9 percent on-year. The Kospi finished 2.33 percent higher in 2015.
One of the biggest impacts of China's economic slowdown was on Hong Kong as the special administrative region relies heavily on trade with the mainland.
For example, its retail sales fell for a ninth consecutive month in November, the longest period of decline in 13 years. It was largely due to the fall in the number of mainland Chinese tourists visiting the city.
Goldman said Hong Kong's prospect remains dim with GDP expected to grow by 1.6 percent on-year. The bank expects the MSCI Hong Kong Index to return 4 percent in dollar terms for 2016.
In 2015, the index finished 3.31 percent lower.
A history of military coups has kept the focus of Thailand's policymakers on political stability rather than foreign investment. Despite Thailand's relatively limited exposure to China, the country's GDP is expected to grow only 2.9 percent in 2016.
Goldman expects the Stock Exchange of Thailand (SET) index to return zero percent in dollar terms for 2016.
A combination of low oil prices and the ongoing scandal involving a state-owned fund has kept investor confidence low in the market.
Goldman expects growth in Malaysia to be at 4.7 percent on-year and a negative 7 percent return for the FTSE Bursa Malaysia KLCI index in 2016.
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