Fed rate hike biggest risk to South Korea's economy: BOK board member

[SEOUL] The biggest risk facing South Korea's economy in the second half of the year is the US Federal Reserve's pending interest rate hike, a Bank of Korea board member said on Wednesday.

"We have many risks facing our economy in the second half. The biggest one is the Fed's rate hike and there is a chance global financial markets may move in extremely volatile ways after the hike," said Chung Hae-bang in opening remarks for a press lunch.

Mr Chung said the government and the central bank were preparing responses for future risks, including volatility from economic troubles in China and uncertainties coming out of other emerging market economies.

He noted that South Korea's economy had been growing at a modest pace, below expectations.

REUTERS