19-09-00 Persistent high oil prices could turn South Korea's current account surplus into a deficit and hamper economic growth, the government has said in a report. "If (average annual) oil prices rise to over $ 35 per barrel, the country's economic growth rate would be less than 4 %, while the current account would show a $ 5 bn deficit next year," it said.
The report was presented to an emergency cabinet meeting to discuss new economic turmoil caused by high oil prices and delays in corporate and banking restructuring. Under this scenario, the consumer price index would rise more than 5 % next year, the report said.

If oil prices averaged around $ 30, the current account would record a surplus of $ 9 bn this year but could reverse to a $ 1 bn deficit next year. In that case, consumer prices would rise 2.6 % this year and 3.5 % next year, and economic growth would be 8.3 % this year and 5.8 % next year. But the government is aiming for an economic growth rate of between five and 6 % next year together with a 3 % inflation rate, it said.