Possible business decline in Korea

by Richard Kilner

Story link: Possible business decline in Korea

Yesterday the Bank of Korea warned that a future decline in business was a possibility.

The bank’s governor, Lee Seong-tae, informed a press conference that the forecast of annual growth rate would probably fall.

The remarks came after the Monetary Policy Committee’s regular meeting ended with the decision to keep the benchmark call rate unchanged at 5%.

Lee Seong-tae went on to say that the gentle growth which Korea had enjoyed could become a downturn.

The comments are contradictory of a report published by the Ministry of Finance and Economy two days earlier.

The report said that growing domestic consumption coupled with an expansion in exports meant that the economy was in good shape and growing.

It is speculated that interest rates could soon be cut, in an effort to assist the economy.