Bank of Korea(BOK) Governor Rhee Chang-yong said, should Washington's negotiation with Beijing fall through, the economic cost would be "absolutely huge" even if the United States defers its reciprocal tariffs against other countries.

Rhee made the remark while meeting with South Korean correspondents in Washington on Friday, after attending the Group of 20(G20) finance ministers and central bank chiefs, as well as the International Monetary Fund–World Bank Group(IMF-WBG) meetings.

The BOK chief said there was a lot of pressure on the U.S. and China to engage in dialogue to promptly resolve the issue.

Rhee said as China has long taken on a role as "the factory of the world," there is very little product that can be traded while excluding the country from supply chains.

He said there was a great deal of uncertainty surrounding the direction of U.S. tariff policy, the financial market situation, the movement of the U.S. dollar, and Washington's ongoing tariff negotiations.