Bank of Korea(BOK) governor Rhee Chang-yong said on Friday that the South Korean economy may have contracted in the fourth quarter of last year.

In a press conference following the BOK’s decision to hike the key rate a quarter of a percentage point on Friday, Rhee expressed concern that the growth forecast for this year of one-point-seven percent issued in November may drop even further.

He said that ahead of the release of the fourth quarter growth figures in two weeks, indicators hint at an increasing possibility of negative growth amid a spike in COVID-19 infections in China, the Itaewon crowd crush and a slowdown in the semiconductor sector.

According to BOK data, the domestic economy expanded zero-point-six percent on-quarter in last year's first quarter, zero-point-seven in the second quarter and zero-point-three percent in the third quarter.

Even if the fourth quarter logs negative growth, the bank believes the annual growth rate will reach two-point-six percent for last year.