S. Korea's economic upturn up to 2 years away, Samsung says

SEOUL, Nov. 20 (Yonhap) -- A looming global recession and fall-out from the
credit crisis in the United States will probably prolong South Korea's economic
downturn for more than two years, head of the nation's top private think tank
warned Thursday.
Chung Koo-hyun, head of Samsung Economic Research Institute, expected the global
economy to "fail to escape the recession for the time being."
Speaking to a meeting with business leaders hosted by the Korean Chamber of
Commerce and Industry, Chung said emerging markets, following advanced economies,
have slid into a downward phase.
"Even if the liquidity crisis is eased, efforts to clean up the global financial
sector will continue by the end of next year," Chung said.
South Korea's economy is particularly vulnerable to the global credit crisis
because of its excessive exposure to dollar-denominated assets at a time when
banks are squeezed by their heavy loans to construction companies amid falling
property prices, Chung said.
Adding to the concern is slowing exports as both advanced and emerging markets
are expected to suffer a contraction next year, Chung said.
Next week, Samsung plans to revise down its economic growth forecast for next
year from its earlier projection of 3.6 percent, Chung said.
On Nov. 12, the government-affiliated Korea Development Institute expected the
economy to grow 3.3 percent in 2009, compared with its estimate of 4.2 percent
growth in 2008 and a five percent expansion in 2007.
(END)