South Korean bank chief says China key to growth

South Korea's central bank chief said yesterday that strong demand from China would accelerate economic growth and exports this year.

"Booming sales in China will propel our economic recovery this year," Bank of Korea governor Park Seung said in an interview with Yonhap news agency.

He attributed South Korea's 2.9 percent growth last year to robust exports especially to China.

"It is very important for us to effectively cope with the China effect. China can bring an opportunity or crisis to our economy," he said.

South Korea was the third-biggest foreign investor in China after Hong Kong and Japan last year.

South Korean firms invested US$4.1 billion in China between January and November last year, compared with US$2.72 billion in the whole of 2002.