The head of the Bank of Korea has warned of possible capital outflow and market volatility as the U.S. is widely expected to raise its key interest rates this month. 

BOK Governor Lee Ju-yeol said on Monday at an international conference that a repetition of the 2013 "taper tantrum" could happen, recalling how global investors pulled out of emerging economies at the time and caused concern in the global market as a result of the tightening of U.S. monetary policy.

Lee said that another taper tantrum could happen any time as advanced economies are ending their quantitative easing and seeking to tighten monetary policy. He added that the finance and trade of countries are closely linked and the monetary policy of major economies could have a big impact on the global financial market and economy.

The U.S. Federal Reserve is expected to raise its key rate by a quarter percentage point to a range of one-point-75 to two percent next week.