Republic of Korea: Staff Report for the 2012 Article IV Consultation

The Korean economy is slowing in the face of strong globalheadwinds. It is projected to bottom out during the course of 2012, regainingmomentum towards the end of the year, in line with the global recovery. The mainshort-term risk to the outlook is a further intensification of the euro area crisis and itsspillover. Parliamentary elections took place in April and the presidential election isscheduled for December, making 2012 a year of political transition.