For 2009's fourth-quarter, economic growth across South Korea slowed much more than expected, increasing pressure on the central bank to defer its plans of raising the benchmark interest rate.

For the three months up-to December 31, 2009, the country's gross domestic production hiked by 0.2%, a very slight rise which has come after a surge of 3.2% that was recorded for the previous quarter. Analysts had estimated that there would be a growth of a minimum of 0.5%.

Bank of Korea has shared that the slow growth has been a direct result of a decline in exports, consumer demands and Government spending.

Despite the fact that the central bank is still sticking to its prediction of a growth of 4.6% this year, the fourth-quarter figures might be used by the Government to pressurize the bank into keeping interest rates at a low of 2% till some definite signs of growth can be seen.

“The weaker GDP number provides more justification for the government to want rates to remain low. Government spending declined and overall growth slowed, showing that the role of economic policies remains important", said Kim Jae Eun, an economist at Hyundai Securities Co.