South Korean experts warn central bank of economic risks

SEOUL - An expected cooling in private consumption and weak construction spending could keep the South Korean economy from sustaining growth, private-sector researchers told the central bank chief on Wednesday.

The Bank of Korea said in a statement the remarks were presented during a regular meeting between its governor, Lee Seong-tae, and private-sector researchers and scholars.

Some participants expected Asia's fourth-largest economy to maintain a moderate growth pattern, thanks to brisk exports and stabilising oil prices and won, the statement said. It did not include comments from Lee.

The meeting was held weeks after the central bank unexpectedly lifted interest rates for the fourth time in nine months to a three-year high to pre-empt inflation as it expressed confidence in the economy.

Latest views from the central bank on the economy are closely watched in financial markets not only because of the unexpected rate increase on June 8 but as the central bank plans to release its revised forecasts on the economy in July.

- REUTERS