South Koran President Kim Dae-jung '.rid Thursday .1 current economic downturn was primarily ihe result of the slow pace of restructuring. but added a recovery would be possible in the second half of this y ear.

"Our competitiveness weakened because we could not reform swiftly." said Kim in a nationally televised town hall meeting, the fourth by the President. "We could not complete reforms, but set the foundation lor reforms I roin the second half, we can sec (he outcome of (he efforts."

“I humbly accept criticism about my handling ol economic allairs in the past three years." said Kim. "I still believe ihe best way lo an economic recovery is to

strengthen ihe economic structure through corporate and fin.uu tai reforms led by the private sector.”

Bui Kun's comments on reform failed 10 stir much reaction, a sharp contrast lo his firs! town hall meeting in 1998 when the audience erupted with applause after his reform pledges.

A recent batch of economic indicators have reinforced the belief the economy has been cooling for months, bringing back echoes of the economic crisis that threw the country into the arms ol ihe International Monetary Fund late in 1997.

I he jobless rate before seasonal factors rose 10 4.6 per cent in January from 4.1 per cent in De cumber with the number of un employed jumping nearly It) per cent to almost a million.

Industrial output in January was stagnant with a 0.1 per cent year-on-year growth, compared with a 4.7 per cent rise in Dec ember.

Rising concerns about the economy despite attempts at restructuring has cut the approval rale for Kim's economic policies lo less than 50 per cent from mwic than 80 per cent about three years ago. according lo local media.

I timing to inter-Korcan issues. Kim said he was in no hurry to hold a return summit with North Korean leader Kim Jong-il although he was sure the meeting would take place.

I can't say exactly when he (Kim Jong-il) will visit because I don 1 know mvself." Kim said.