Bank of Korea(BOK) Governor Lee Ju-yeol has hinted at a possible cut of the key rate amid trade tensions between the U.S. and China.

In a speech marking the 69th anniversary of the bank's foundation on Tuesday, the BOK chief stressed the need to take "appropriate measures" to deal with changing economic conditions.

Lee assessed that South Korea must undertake such measures to accommodate external uncertainties, such as the U.S.-China trade row and a slumping semiconductor market.

The BOK chief added that the country must closely monitor the direction of economic changes and their impact.

The remarks hint at a possible shift from a previous assertion that Korea's key interest rate would not be reduced. 

As recently as May 31st, Lee said he had ruled out the possibility of a rate cut on the belief that the country's economy would gain momentum during the second half of the year.