Bank of Korea(BOK) Gov. Rhee Chang-yong said the country’s economic growth is slowing due to a lack of innovation and new industries over the past decade. 

The remarks followed a decision by the BOK’s Monetary Policy Committee to lower its benchmark interest rate by 25 basis points earlier the same day.

The BOK governor said the central bank’s one-point-eight percent growth forecast for next year reflects what is feasible for the country and urged people to accept it. 

He said South Koreans are unaccustomed to seeing such low growth figures, which stand in stark contrast to the high growth the nation experienced in the past.

Rhee attributed the economic slump to a lack of restructuring and dependence on existing industries. 

He said that to grow more than one-point-eight percent in the absence of new growth engines and more foreign workers, the country would need to mobilize fiscal policy and lower interest rates.

But the governor said the economy would suffer more if that happened.