High oil prices are the biggest threat to South Korea's economy and have already hurt growth this year, AP quoted Finance Minister Han Duck-soo as saying Monday. "The main downside risk for the Korean economy at present is high oil prices," Han told reporters, adding that they have shaved off about one percent from economic expansion so far in 2005. Economic growth in resource-poor South Korea, which imports almost all of its crude oil, accelerated in the third quarter on rising domestic consumption and robust exports, the Bank of Korea said last week. Gross domestic product grew 1.8 percent in the July-September quarter from the second quarter, when the economy expanded 1.2 percent. From a year earlier, the economy grew 4.4 percent, outpacing the second quarter's 3.3 percent expansion. Recent economic indicators show consumer spending has been gathering momentum after households were able to reduce debt. A rise in personal bankruptcies because of massive credit card liabilities earlier in the decade hurt consumer spending in South Korea, Asia's fourth-largest economy after Japan, China and India. --more 1258 Local Time 0958 GMT
