Korean rate setting to focus on recovery

Monetary policy will be geared towards restoring economic growth the Korean central bank said in a statement on monetary policy for 2009.

"Monetary policy will be operated with a main focus on supporting the recovery of economic activity and improving the flow of funds since prices are expected to be downwardly stable," the central bank said.

The central bank also said it would act to lessen the impact of the credit crunch by implementing new measures to encourage bank lending, including expand