S Korea promises property watch

President Roh has had a rough start

South Korea's president has promised to focus on the economy as he marks his first 100 days in office.

Roh Moo-hyun's term has so far been dominated by the problem of North Korea's nuclear programme.

But at a press briefing to mark the 100-day anniversary of his taking office, he told reporters that economic troubles would be at the top of the agenda as well.

"From now on, I plan to place an emphasis on stabilising the economy," he said.

"I will certainly put a stop to any surge in property proces, the biggest enemy to the lives of ordinary people."

While the economy is in the doldrums thanks to the global slowdown, the Sars virus and the threat from North Korea, prices of flats in the capital Seoul are soaring.

Last year saw a 16% rise, and they are up another 4% so far this year even while the economy contracted - for the first time in two years - between December and February.

'Time and patience'

Mr Roh acknowledged that mistakes, both on the economy and on the question of North Korea's weapons, had been made.

"Of course, I frankly acknowledge that I and my government have made more than a few mistakes," Roh said.

"I again stress that time and patience are necessary."

But he had some praise for the way his team has handled economic problems to date.

The meltdown at SK Global, the trading arm of the country's number four conglomerate, SK Group, had been well handled, he said.

Bond markets had been virtually frozen in the aftermath of the revelation of the $1.1bn accounting scandal at SK Global, raising the cost of capital and kicking off a run on credit card companies.

The government pulled together a bailout forcing the card firms' shareholders to boost capital.