Bank of Korea governor Lee Ju-yeol has emphasized the need to raise the country’s potential growth capacity through restructuring as a way of dealing with global economic uncertainties.
 
At an economists’ dialogue at the central bank Wednesday, Lee said the keyword for the global economy is uncertainty, highlighting the so-called G2 risks, or an expected increase in the U.S. key interest rate as well as the slowing Chinese economy.
 
Lee said that South Korea needs to thoroughly brace for the G2 risks, saying they will inevitably come to realization as the U.S. normalizes its monetary policy and China transforms its growth model.
 
Lee said although some foreign experts see South Korea as safer than other emerging markets given its healthy foreign reserves and strong fundamentals, local economic policy authorities are open to various possibilities as they are viewing the current situation with a sense of urgency.