2nd LD Writethru: S.Korea freezes policy rate at record low for 3 months

South Korea's central bank froze its policy rate Thursday at a record low of 2 percent, refraining from altering the rate for three straight months.

Bank of Korea (BOK) Governor Lee Ju-yeol and six other policy board members decided to keep the benchmark seven-day repurchase rate on hold at 2 percent. The bank cut the rate by 25 basis points in August and October each.

The rate freeze is in line with market expectations as seen in the Korea Financial Investment Association's survey of 111 experts. About 96 percent of the respondents predicted the rate on hold in January.

The rate-setting decision came as positive signs were detected in recent economic indicators. In December, retail sales showed an upbeat picture as auto sales by local automakers surged 27.2 percent from a year earlier. Credit card usage increased 8.7 percent, with gasoline sales rising 1.6 percent.

Exports in December advanced 3.7 percent on demand for locally- made mobile phones, steels and chips. Trade surplus was 5.78 billion U.S. dollars last month.

Sales at discount outlets and department stores reduced 3.6 percent and 0.3 percent each in December, but those were down from falls of 4.7 percent and 6.5 percent each in November.

Construction investment retreated 1.7 percent in November, but facility investment expanded 13.1 percent in the same month. Production in the mining and manufacturing industries climbed 1.3 percent in November on robust demand for cars and chips. Endi