S. Korea's consumer sentiment flat in Dec.

SEOUL, Dec. 28 (Yonhap) -- South Korea's consumer confidence remained flat in
December from the previous month as concerns about the pace of the economic
recovery lingered, the central bank said Monday.

The consumer survey index (CSI) -- a gauge of consumers' overall economic
outlook, living conditions and future spending -- reached 113 in December,
unchanged from a month earlier, according to the Bank of Korea (BOK).
The CSI fell for the first time in eight months in November after hitting an over
seven-year high of 117 in October, it added.
A reading above 100 means optimists outnumber pessimists. The survey of 2,200
households in 56 major cities was taken Dec. 11-18.
"Although the economy is picking up on improving domestic demand and exports,
consumers remained cautious due to lingering economic uncertainty," said Jeong
Kui-yun, an official at the BOK. "The Dubai debt crisis and prospects for
weakening fourth-quarter growth affected sentiment, but the index still stayed
above par."
A sub-index measuring current economic conditions reached 106 in December, down
four points from the previous month, and an index gauging the economic outlook
shed one point to 118, it added.
The result came as the South Korean economy grew 3.2 percent in the third quarter
from three months earlier, the fastest quarterly expansion in more than seven
years.
The BOK said Dec. 11 that Asia's fourth-largest economy is predicted to advance
0.3 percent from three months earlier in the fourth quarter.
A set of economic data is underpinning optimism that the Korean economy is
quickly pulling out of its worst downturn in more than a decade, sparking debate
over when and how to roll back expansionary fiscal and monetary policies.
After December's rate-setting meeting, BOK Gov. Lee Seong-tae hinted that the
bank will mull the timing of a rate hike amid growing signs of an economic
rebound.
The government said it will keep its expansionary macroeconomic policy "for the
time being," but plans to "steadily" roll back stimulus measures while taking
into account economic and labor market conditions.
The BOK cut the policy rate by a total of 3.25 percentage points to a record low
of 2 percent between October last year and February in an attempt to put the
brakes on a sharp economic free-fall.
sooyeon@yna.co.kr
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