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