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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World S.Korea's Lee warns against unwinding stimulus too early Reuters - Friday, January 1 Send IM Story Print SEOUL, Jan 1 - South Korean President Lee Myung-bak on Friday warned against the dangers of scaling back on economic stimulus measures too early amid the global downturn and said fiscal spending in the new year should be fast. The country's parliament passed a national budget for 2010 at the last minute on Thursday, averting an unprecedented resort to a temporary spending plan by approving 290 trillion won in expenditures heavy on outlays for infrastructure construction. [ID:nTOE5BU02Z] "The word of warning is that it would be best to be cautious about adopting an exit strategy until the first half," Lee said at a cabinet meeting. "The reason we were able to do better than anyone else last year was because of the preemptive and decisive fiscal spending. I hope all ministers can cooperate so that we can be more effective this year," Lee said. The comments come amid growing pressure for a shift in policy focus to rein in prices, with data showing this month consumer inflation at an 8-month high. [ID:nTOE5BU001] The Bank of Korea will start raising interest rates in 2010, the country's top banker said on Thursday, although economic conditions worldwide and at home would be taken into account. The Bank of Korea is widely tipped to become the second G20 central bank to begin raising rates from early in the year as Asia's fourth-largest economy recovers much faster than expected from the global downturn. President Lee said this week that gross domestic product in 2010 would probably grow by more than the government's official target of 5 percent, above the central bank's forecast for 4.6 percent gain. [ID:nTOE5BT04C] South Korea's exports rose much faster in December than expected from a year earlier, indicating a fast recovery in world trade, data showed on Friday. [ID:nTOE600001] Recommend Send IM Story Print Related Articles Oman spending seen rising in 2010 - news agency Reuters - 1 hour 27 minutes ago RPT-Wall St Week Ahead: New year, old worries for U.S. stocks Reuters - 2 hours 5 minutes ago Indian bond yields end a touch low amid thin trade Reuters - 2 hours 41 minutes ago India cbank: To sell 100 bln rupee bonds on Jan 8 Reuters - 2 hours 55 minutes ago India corp bond yields ease in thin new year trade Reuters - Saturday, January 2 News Search Top Stories Iran's Mousavi ready to die for opposition cause Deadline looms in Fox, Time Warner Cable dispute Soviet-era Lithuanian nuclear plant shuts down under EU deal Wall Street ends recovery year on weak note London, Paris stocks finish 2009 with big gains More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Japan Airlines 'may stop international flights' Oil prices rise on last day of 2009 UK honours F1 king, Status Quo stars, but bankers out Van der Sar granted leave after wife collapses Wall Street ends recovery year on weak note More Most Viewed » Tiger's wife Elin seeking divorce: reports British priest defends urging people to shoplift Century-old butter found in Scott's Antarctic hut Brazilian confesses to sticking needles into two-year-old Plastics component affects intestine: study More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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