Inflation is expected gradually to reach the Bank of Korea's 2 percent target.

"Unless unprecedented North Korea risks crop up, South Korea's economy will continue to grow at a similar pace to this year," Bank of Korea Governor Lee Ju-yeol told a news conference.

Lee noted, however, that there were still many uncertainties and risks for the economy ahead, among them household debt, international political conflicts and protectionism in global markets.

 

Copyright Reuters, 2017