The Bank of Korea has submitted a report to the National Assembly explaining the key economic issues, both domestic and global,... that should be taken into consideration in deciding policies.<br />Won Jung-hwan reports.<br /> <br /> The Korean central bank has highlighted the trade dispute between Washington and Beijing, U.S. monetary policy, and Korea's domestic jobs market, as the main concerns for the South Korean economy.<br /><br /> In a report submitted at a parliamentary briefing on Friday... The Bank of Korea said the deepening trade dispute between the U.S. and China could harm the Korean economy.<br />Amid the rising tensions between its two main trading partners, Korea's exports have already edged down by 0-point-1 percent in June, marking the second fall in exports in 20 months. <br /><br /> The report also cites U.S. interest rates as one of the financial market variables. <br />Last month, the Fed raised its benchmark fund rate to between 1-point-75 percent and 2 percent and signaled it would raise rates twice more before the end of this year. <br />Despite the interest rate increases having a limited effect on the Korean economy so far, the upcoming U.S. rate hikes are leading to calls that the Korean central bank should do the same and raise its 1-point-5 percent rate in August or November. <br /><br /> The central bank also highlights the need for more measures to boost job creation.<br />Between January and June, an average of 142-thousand new jobs were added each month, the slowest growth since the 2008 global financial crisis. <br />But the report does forecast some recovery in the automobile and shipbuilding industries next year. <br /><br /> The BOK has recently lowered the country's annual growth rate for this year to 2-point-9 percent, down of 0-point-1 percent from the target 3 percent.<br />Won Jung-hwan, Arirang News. <br />
