NEWS BRIEF

[Anchor Lead]

The Bank of Korea says the nation's economy posted a negative growth for the second straight quarter.According to the central bank, Korea's real gross domestic production shrank 3.3 percent in the April to June period from the previous quarter. This is the largest on-quarter drop in over 22 years since the first quarter of 1998 when it contracted 6.8 percent during a financial crisis. The Korean economy also declined 1.3 percent in the first quarter of this year.
Korea's largest low-cost carrier Jeju Air has scrapped a deal to take over another budget airline Eastar Jet. Jeju Air explained the uncertainties surrounding were too large for it to push for the takeover under the current situation. Airline industry insiders predict Eastar Jet will likely be liquidated if the takeover negotiations collapse ultimately.
In a radio interview on Thursday, Joo Ho-young the floor leader of the main opposition United Future Party opposed the relocation of government bodies to Sejong, saying that it is an issue of significance as it will also require the move-out of foreign embassies and diplomatic missions. He also urged respect for the Constitutional Court's 2004 ruling finding the capital relocation unconstitutional. But Joo supported Prime Minister Chung Sye-kyun's idea to open a branch of the National Assembly in Sejong.