DAVOS-S.Korea President urges caution on exiting stimulus

DAVOS, Switzerland Jan 28 (Reuters) - South Korea's president urged members of the Group of 20 economic powers on Thursday to tread with caution as they looked to unwind extraordinary stimulus measures brought in to cope with a deep financial crisis.

President Lee Myung-bak, who heads the G20 this year, also told the World Economic Forum in Davos that a summit Korea will chair in November of this year would prove a major test of the group's ability to act as a global forum on economic issues.

"As the global economy finds its feet again, each G20 member country will need to consider carefully how it will implement its exit strategy taking account of local economic conditions," he said.

Ahead of the November summit, energy would be devoted towards reaching agreement on a stronger and more effective financial early warning and surveillance mechanism to avoid future crises, he said.

Trade would also top the agenda at the summit in Seoul, he said, stressing the need to resist protectionist pressures.

"In particular, concluding the Doha Development Agenda before the end of the year should be given the highest priority," he said.

G20 nations would also work to establish a global financial safety net that can put in place an international mechanism to address the impact on developing economies of sudden reversals of cross-border capital flows, he said. (Reporting by Clara Ferreira Marques and Tamora Vidaillet, editing by Mike Peacock)