Conglomerates recommend no exit strategy for now

SEOUL, Jan. 14 (Yonhap) -- The government should keep hefty stimulus packages in
place for now to sustain the recovery phase of the South Korean economy, the
nation's largest business lobby said Thursday.

Although the economy has rapidly crept out of its worst downturn in more than a
decade, uncertainties over rising unemployment, the local currency's strength and
a delayed recovery in the global economy have made businesses gloomy, the
Federation of Korean Industries said in a statement.
The federation made the remark after holding this year's first meeting with heads
of the nation's business conglomerates, such as Samsung and Hyundai Motor.
"We agreed that the government should keep an attitude of caution in implementing
an exit strategy," the federation said in a statement.
Buoyed by a slow recovery in the global economy, the Korean economy expanded 3.2
percent in the third quarter of last year, marking the fastest increase in more
than seven years.
In a report last month, the Bank of Korea expected the economy to grow 4.6
percent this year, compared with an expected 0.2 percent increase for last year.
The federation predicted that the economy may expand more than 4 percent this
year, roughly in line with the central bank's forecast.
This year, chiefs of the conglomerates also agreed to focus on creating jobs to
help the country avert a jobless recovery, according to the statement.
(END)