Bank of Korea Governor Lee Ju-yeol assessed the current economic conditions as grim but said it will improve down the road.
The BOK chief gave the assessment on Friday, citing the economic contraction of point-three percent in the first quarter and a sharp decrease in capital investment.
During a meeting with the heads of local banks in Seoul, Lee said it's true the economy is facing difficulties as external conditions are not favorable and that the private sector remains sluggish.
The central bank chief stressed the need for the government to use policies to boost corporate investment and business sentiment.
However, he projected that the government spending's contribution to economic growth will increase and global economic conditions will gradually improve, cautioning against excessive pessimism.