South Koreans asked to cut energy use, spending

SEOUL, Oct 13 (Reuters) - South Korea's President Lee Myung-bak on Monday asked his people to save energy and to reduce overseas spending to minimise the impact from a global financial crisis on Asia's fourth-largest economy.

Lee said the country's economy was expected to face difficulties until next year due to a sharp slowdown in developed markets such as the United States, Europe and Japan.

But he said South Korea was in a different situation to that of the financial crisis of 1997, with the country's foreign exchange reserves much bigger.

"If we cut down on energy by 10 percent, we will not post a current account deficit. And, please, cut overseas consumption and increase domestic spending," Lee said in a prepared statement for his first radio speech to the nation.

South Korea is expected to spend $110 billion more this year in importing oil, compared with a $60 billion in 2007, and the country is seen reporting a current account deficit this year of around $10 billion, he said.

"We are in a tough time, but the situation is much different than the financial crisis in 1997. We have foreign exchange reserves of $240 billion and we can immediately use all of them," he said. (Reporting by Cheon Jong-woo; Editing by Greg Mahlich)