S. Korean economy could grow 6%: BoK

S. Korean economy could grow 6%: BoK

SEOUL: The South Korean economy could grow 6 percent this year despite worries about high oil prices and a slow rebound in domestic consumption, the Bank of Korea said on Thursday.

"The Korean economy isn't too bad. There are problems, but it has the ability to absorb them," central bank governor Park Seung said after his bank left its main interest rate unchanged at a record low of 3.75 percent.

The Bank of Korea's main rate has been at 3.75 percent for 11 straight months. Low interest rates can help bolster an economy by making it cheaper for businesses to borrow money for expansion.

Park said there were still concerns about high oil prices and weak consumer demand in the world's 12th largest economy. But on the back of strong exports, he said it could grow by 6 percent this year. -- AP