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"things go south" is correct and is commonly used as an idiomatic expression in written English
It is generally used to mean that something has gone wrong or started to go wrong, or that a situation has become worse than expected. For example: "The sales of our new product were going great until suddenly things went south and sales started to decrease."
Exact(49)
Once they go west, things go south.
Taxpayers would not have to bail out those investors should things go south.
If things go south, the implications of that would dwarf anything that has happened in Syria or Iraq".
"If in the next five years things go south for country music, I'll probably get the blame for it," he told Billboard, in 1995.
"The Navy says, 'It's not our plan.' The Marines are against it — they know they're going to be the guys on the ground if things go south".
Things go south when the quasi-mythical Euro gangster known only as "Big Vern" (Werner Herzog) turns up in Walford, asking for an explanation in an icy manner that suggests he knows only absolute obedience.
Similar(8)
"Man, things went south.
That was where things went south.
It did, but then things went south.
"But then things went south really fast".
From that point, things went south for us".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com