Bank of Korea(BOK) Governor Lee Ju-yeol has dismissed concerns that the U.S. Fed's latest interest rate hike could immediately result in sharp capital outflows, 
 
Lee told reporters that South Korea’s external soundness is in a good state following a meeting of the central bank's monetary policy committee on Thursday.
 
Asked if the Fed's move has made it difficult for the BOK to further slash its key rate, Lee emphasized that other various factors must also be considered. He said that when adjusting the nation’s key interest rate, not only the inflow and outflow of capital but also overall economic conditions must be taken into account, including prices.
 
While underlining the private sector’s abundant foreign currency liquidity thanks to the nation’s current account surplus and sufficient foreign exchange reserves, the bank chief also noted that downside risks have slightly grown compared to before.
 
Lee said he will operate future monetary policies by closely monitoring the incoming Donald Trump administration’s economic policies and the financial situation in emerging economies as such factors could become key risks.