South Korea’s central bank chief called for a careful monitoring of the Chinese economy Wednesday. 

“Considering its impact on the global economy, we cannot but be sensitive to changes in the Chinese economy,” Bank of Korea Gov. Lee Ju-yeol said in a monthly meeting with economists.

Lee said the difficulties South Korea currently faces may have also been caused by uncertainties concerning the future of the Chinese economy.

“The economy is continuing to show signs of instability with the global financial market showing great fluctuations at the beginning of the year,” the BOK chief said.

“The instability may have been due to a combination of many elements, such as the possibility of oil prices continuing to fall and uncertainty over the direction of U.S. monetary policy, but the instability in the Chinese economy may have also been a cause,” he said.

Since the beginning of the year, foreign investors have been net sellers of South Korean shares, continuing their record selling streak for 37 consecutive sessions as of Tuesday.

The local currency is also weaker against the U.S. dollar, once dipping to the lowest level since July 29, 2010.

“We are always carefully watching the Chinese economy but believe we must more closely analyze any changes in the Chinese economy and begin taking necessary measures,” Lee said.

On Tuesday, the central bank reported South Korea’s economic growth dipped to a three-year low of 2.6 percent in 2015, hurt by slumping exports and sluggish domestic consumption.

(khnews@heraldcorp.com)