S.Korea c.bank vows tightening policy ahead

NEW YORK Aug 25 (Reuters) - South Korea's central bank chief on Wednesday pledged to keep its policy on a tightening mode by warning of building inflation pressures while playing down concerns about slowing growth in the world's major economies.

"Looking ahead, the Bank of Korea will conduct monetary policy in such a way as to help the economy maintain price stability, while sustaining sound growth," Bank of Korea Governor Kim Choong-soo said in a speech to be delivered in New York.

The central bank last month raised its policy interest rate KROCRT=ECI for the first time since the 2007/2008 crisis from a record-low 2 percent and already flagged a second increase as soon as next month. [ID:nTOE67B01D]

"Despite the hike in the policy rate last month, the current monetary policy stance is still deemed highly accommodative, given the financial and economic situation at home and abroad," Kim said, according to the text of the speech that he will deliver at a gathering hosted by the Korea Society.

He said the United States, China and the other major economies would remain on a recovery track, although the pace of increase would probably be slower than expected.

The remarks came as worries that the world's major economies may be losing steam quickly after a quick turnaround from the crisis early this year have spooked the global equity markets.

"In the case of China, the government's targeted 8 percent growth is likely to be easily reached both this year and next year," he added.

China takes in about one-quarter of the goods exported from South Korea, helping to pull South Korea's economy out of the economic crisis much faster than expected. (Reporting by Yoo Choonsik; Editing by Ken Wills)