South Korean central bank on Thursday revised down its 2015 growth outlook to 3.4 percent from an earlier forecast of 3.9 percent.
"The downward revision reflects unprecedented factors," Bank of Korea (BOK) Governor Lee Ju-yeol told reporters after the January monetary policy meeting.
Lee said that fiscal expenditure fell on lack of tax revenue and mobile devices sales reduced on tighter regulations, noting that it resulted in slower growth in the fourth quarter of last year.
The BOK outlook was much lower than the government's growth forecast of 3.8 percent.
The bank downgraded its 2015 outlook for consumer price inflation to 1.9 percent from 2.4 percent estimated three months earlier. It is also lower than the government's estimate of 2 percent.