Lee Chang-yong said, "Economic growth rate this year is 2.2% → 2.1% due to the martial shock."

[Anchor]
Lee Chang-yong, governor of the Bank of Korea, said the country's economic growth rate will fall 0.1 percentage point to 2.1 percent this year from 2.2 percent earlier forecast due to political instability following the martial law shock.

Above all, Lee assessed that weak consumer sentiment has negatively affected the already bad domestic economy.

Reporter Ryu Hwan-hong reports.

[Reporter]
The emergency martial law, which took place in a surprise move on the night of the 3rd, was lifted in six hours, but surprised citizens were busy canceling a series of company dinners and trips planned for the end of the year.

This completely led to the damage to the business of self-employed people who operate restaurants and lodging businesses, and eventually caused wrinkles in the national economy.

Lee Chang-yong, governor of the Bank of Korea, predicted that the contraction in consumer sentiment would lead to a drop in private consumption and government spending, reducing economic growth this year by 0.1 percentage point to 2.1 percent from the original forecast of 2.2 percent.

"Exports seem to remain as expected, but card spending and economic sentiment indices have fallen sharply," Lee said.

Governor Lee stressed that the ruling, opposition, and government will agree to pass the supplementary budget bill as soon as possible and implement the finances early, which will help restore economic sentiment and confidence in foreign investors.

[Lee Chang-yong / Governor of the Bank of Korea: For this change of mind, the most important time is to fast-track important economic bills, legal and political bills, and to fast-track and enforce bills that can be agreed upon by the ruling and opposition parties regarding the economy..]

Lee Chang-yong, governor of the Bank of Korea, predicted that the won-dollar exchange rate rose by about 30 won after the martial law shock, but it will fall naturally if economic policies work normally.

It is somewhat less volatile without much intervention, he said, adding that foreign reserves have not fallen below $410 billion as some feared.

Regarding the key rate cut next year, Lee said he would decide when and how much the cut would be, taking into account economic data obtained after the martial law shock and the policy direction of the U.S. Fed and Trump's second-term administration.

I'm YTN's Ryu Hwan Hong.