Bank of Korea Governor Lee Ju-yeol expects the South Korean economy to grow more than three percent, as previously forecast, this year. 

In a press conference on Wednesday, Lee said gains in exports and facility investment are expected to rise at a faster pace than predicted. He cited the massive U.S. stimulus package and an accelerated vaccine rollout. 

Lee said, however, that the recovery will be affected by the vaccine supply and how the pandemic unfolds. He added that the global semiconductor market and U.S.-China trade conflict will also be major variables. 

Lee played down inflation fears, saying that although pent-up demand could temporarily push up inflation, the increase isn't expected to be sustained. 

He said it's certainly not time to respond to inflation with monetary policies.  

Last month, the central bank forecast that the South Korean economy would grow three percent this year.