Lee warns of negative economic growth in 2009

By Yoo Cheong-mo
SEOUL, Dec. 27 (Yonhap) -- President Lee Myung-bak said Saturday that the global
financial crisis will reach its peak during the first half of next year, forcing
South Korea to suffer its first negative economic growth in a decade.
"On an annual basis, Korea may attain some economic growth, but may undergo
economic contraction in the first and second quarters," Lee said before receiving
key 2009 policy briefings from the education and culture ministries at the
presidential office.
"Few countries worldwide will attain economic growth between the fourth quarter
of 2008 and the first quarter of 2009. The Korean economy will also hit rock
bottom in the first half."
Seoul's finance ministry reported to the president last week that the Korean
economy will grow around 3 percent next year despite the global economic
downturn, though private think tanks at home have steadily warned that the
nation's economic growth will fall below 1 percent.
Earlier this week, Lee said that the economic crisis will take a turn for the
worse next year, and the possibility of an annual economic contraction cannot be
ruled out.
At the joint policy briefing session, the president instructed ministry officials
to take sufficient policy measures to drastically enhance the nation's global
competitiveness in the education, science and culture sectors in preparation for
the post-crisis era.
"The nation's future economic growth depends on the success of the education,
science and culture policies. Failure of these policies will cloud the future of
the nation," said Lee.
ycm@yna.co.kr
(END)