The head of South Korea's central bank said Friday that the country's economy remains little affected by the recent terror attacks in Europe, but that it may not be completely safe from external uncertainties stemming from a U.S. rate hike and China's economic slowdown.

In a Seoul meeting with heads of local commercial banks, Bank of Korea Gov. Lee Ju-yeol said the effect of last week's terror attacks in Paris has been limited, noting the global financial market has "quickly regained stability."

However, the central bank chief said the country needs to keep close tabs on what he called a ripple effect from the attacks that killed over 120 people.

"We will have to see what kind of an effect (the terror attacks) will have on the economic recovery in the eurozone that already remains weak and if any contraction in consumer sentiment may spread to other countries," he said at the meeting.

Lee said the tragic incident reminded people of the dangers associated with geopolitical risks, which he said have for some time sat in the back of people's minds amid uncertainties stemming from the so-called G-2 risks.

"The terror attacks have reminded us of geopolitical risks that have been hidden under the so-called G2 risks -- a rate hike by the U.S. Federal Reserve and China's economic slowdown," the BOK governor said.

"What concerns me is the possibility of such risks taking place simultaneously, creating complex problems from which our country too will not be safe," he added.

Still, the central bank chief said any such impact on the local economy will be limited, citing what he called the country's strong economic fundamentals and adequate policy measures.

"We must remain cautious, but at the moment, the situation does not require us to be overly concerned," he said. (Yonhap)