Korean economy making hard landing, investment bank says The Korean economy is set for a hard landing in light of the won's weakness against the dollar, a falling stock market and the upturn in bond prices, global investment bank Salomon Smith Barney contended in a report.

In the report on the Korean economy and market, SSG said that Korea's stock prices started to tumble in the third quarter this year due to dampened investor sentiment. The Korean economy is clearly showing signs of a recession with the foreign exchange rate, interest rates and other macroeconomic indicators worsening, it said.

Most experts agree that the Korean economy will continue to slump in the first quarter of next year when the government is expected to put forward a stimulus package, the investment bank maintained.

SSG's view is in line with a series of foreign banks' projections that the Korean economy is likely to make a hard landing this year.

http://www.koreaherald.co.kr/SITE/data/html_dir/2000/12/06/200012060028.asp

-- Carl Jenkins (somewherepress@aol.com), December 06, 2000