Roh says no stimulus for economy

Roh says no stimulus for economy

SEOUL: President Roh Moo-Hyun on Wednesday ruled out a stimulus package for South Korea's slowing economy, saying the step could trigger negative side-effects such as higher consumer and real estate prices.

"The economy is in a difficult situation. But the government will not take any short-term stimulus steps as it will trigger higher consumer prices and real estate prices," he said in a speech to the National Assembly.

Roh pledged that his administration would succeed in stabilizing real estate and consumer prices while continuing to push ahead with economic reforms.

The reformist president also said the economy is overcoming the shock of an accounting scandal at SK Global, the trading arm of SK Group, South Korea's third biggest conglomerate.

"If there had been no reforms, our economy would have collapsed again at the SK Global shock," he told legislators.

A third straight monthly trade deficit announced Tuesday was the latest in a series of bad news affecting South Korea's economy.

Consumer confidence tumbled to an 18-month low on Monday while consumer prices rose at the fastest pace in more than two years in March. -- AFP