The Bank of Korea(BOK) has forecast that the latest rise in global oil prices will positively affect South Korea’s economy.
 
The central bank said in a report submitted to the National Assembly on Friday that if oil prices steadily rise as forecast by key organizations, the move would ease jitters in financial markets and thus improve the trends of the global economy.
 
The BOK projected that a gradual rise of oil prices will have a positive effect on South Korea’s economy via recovery in consumption and investment sentiments as well as improved exports rather than emerge as a burden on growth.
 
The bank said that the drop in oil prices drove down interest rates in the nation’s bond market and led to the outflow of foreign investments from the country's financial market.