Anchor: A sharp resurgence in COVID-19 infections in South Korea has dashed hopes of a long-awaited economic rebound during the second half of this year. Bank of Korea Governor Lee Joo-yeol told a panel of lawmakers on Monday that "economic uncertainties have increased," raising the chances of the central bank slashing this year's economic growth forecast.
Sam Len reports.

Report: A renewed surge in coronavirus infections is expected to weaken South Korea's economic recovery momentum and heighten uncertainties for the world's 12th-largest economy, Bank of Korea Governor Lee Ju-yeol told lawmakers on Monday. 

As a result, the central bank is widely expected to lower its economic growth outlook for South Korea which will be announced this Thursday.

[Soundbite: Bank of Korea Governor Lee Ju-yeol (dubbing)]
"COVID-19 infections have begun to spread again leading to forecasts of a weakened recovery of the domestic economy."

When asked by one lawmaker if the central bank plans to lower its economic growth outlook for South Korea to the minus-one percent range, the governor said it would have to be lowered by an even larger margin.

The central bank already slashed its economic growth forecast for South Korea to minus-zero-point-two percent for this year. 

The governor said the stringent social-distancing requirements following a resurgence in COVID-19 infections will have a "very negative impact" on the South Korean economy, while the global economy still faces a high level of uncertainties.

The BOK plans to support South Korea's economic recovery by easing monetary policies further, while keeping a close eye on rising debt due to cheaper borrowing rates.

Meanwhile, the government has apparently scrapped hopes of an economic rebound during the third quarter of this year after heavy floods caused damage in many parts of the country.

This shift in view has prompted economic officials to consider issuing vouchers to spur on-line spending.

The Organization for Economic Cooperation and Development(OECD) has slashed its economic growth forecast for South Korea this year by zero-point-four percentage point to zero-point-eight percent.

But it has warned that the outlook could be lowered even further to minus-two percent if the COVID-19 epidemic worsens in South Korea.
Sam Len, KBS World Radio News.