S. Korean conglomerates predict economic recovery in early 2010

SEOUL, May 21 (Yonhap) -- South Korea's top business lobby group said Thursday it
expects the nation's economy to show signs of revival early next year, but
remained cautious about prospects for a V-shaped recovery.
"Given the current economic conditions, a recovery of the real economy could be
possible after the end of this year," the Federation of Korean Industries,
representing the conglomerates called "chaebol" in Korean, said in a statement
after its monthly meeting.
The federation, which includes Samsung, LG and Hyundai Motor groups as members,
said some encouraging signs in financial markets were mainly due to the won's
weakness against the U.S. dollar and the government's stimulus packages.
South Korea's export-dependent economy, Asia's fourth-largest, has been hit hard
by slumping exports and sluggish consumption at home amid the global economic
slump.
However, the economy grew 0.1 percent in the first quarter of this year from a
5.1 percent contraction the previous quarter, prompting some analysts and
government officials to predict a V-shaped recovery, referring to a quick
bounce-back from a sharp downturn.
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