UPDATE 1-S.Korea Lee warns of big trouble if FX accord fails

Published 10/11/2010, 02:16 AM
Updated 10/11/2010, 02:20 AM

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SEOUL, Oct 11 (Reuters) - South Korean President Lee Myung-bak warned that a failure by G20 economies to find a solution soon to disputes about foreign exchange policy could cause significant problems for the world economy.

He urged the parties to reach an agreement by the time his country hosts the summit meeting on Nov. 11-12.

"If each country insists on its own interest during the recovery phase, it will bring about trade protectionism and will cause the world economy very big problems," Lee told foreign media journalists during a lunch meeting at his residence.

Lee did not elaborate.

Foreign exchange policy has emerged as the thorniest topic ahead of the meeting in Seoul by leaders from the Group of 20 developed and leading emerging economies. They will aim to put the world economy on a more balanced and sustainable growth pattern. (Reporting by Yoo Choonsik and Jeremy Laurence; Editing by Ken Wills)

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