Lee Chang-yong, the governor of the Bank of Korea, noted during a press conference immediately following the Monetary Policy Committee meeting on the 17th that "the annual growth rate this year is expected to fall below the February forecast of 1.5%."
Governor Lee said, "The prolonged uncertainty is more significant than expected, and the continued sluggishness in domestic demand is due to extraordinary factors such as large-scale wildfires and the suspension of some construction sites." He added that "the tariff policy, having been strengthened more than anticipated at the time of the February forecast, is also expected to lower growth rates moving forward."
Governor Lee assessed, "The extent to which this year's growth rate will adjust is highly uncertain and depends on how quickly economic sentiment recovers due to final national tariffs, supplementary budget size, and the alleviation of political uncertainties."
He mentioned that the growth rate for the first quarter may also be revised downward. Governor Lee stated, "Given that political uncertainty is lasting longer than expected, coupled with tariff effects, there is a significant possibility of a considerable downward adjustment in the first quarter growth rate."
In relation to this, the Bank of Korea released an 'economic situation assessment' report that described the situation as "not ruling out a slight possibility of negative growth in the first quarter."