Korean Economy to Hit Bottom in 1st Half of 2009

Amid the global financial turmoil crippling the nation’s economy in a manner never seen in the last decade, President Lee Myung-bak Saturday warned that the Korean economy will hit rock bottom in the first half of next year.

"Few countries worldwide will attain economic growth between the fourth quarter of 2008 and the first quarter of 2009,” Lee said, adding “The Korean economy will also hit rock bottom in the first half,” Yonhap News reported.

Earlier this week, Lee said that the economic crisis will take a turn for the worse next year, adding that the possibility of an annual economic contraction cannot be ruled out.

Observers widely agree 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.

Last week, Seoul's finance ministry reported to the president that the Korean economy will grow around 3 percent next year despite the global economic downturn. However, private analysts have steadily warned that the nation's economic growth will fall below 1 percent next year.