South Korea's central bank cut its key interest rate for the first time in 15 months on Thursday, providing support to an economy dragged down by the shock of a ferry sinking that killed hundreds of teenagers.

The Bank of Korea lowered its policy rate by a quarter percentage point to 2.25 percent.

The bank had kept it unchanged since a rate cut in May 2013.

Analysts had predicted the bank to lower borrowing costs to boost consumer spending, which turned negative due to the shock of the Sewol ferry disaster earlier this year.

Last month, the bank cut this year's growth forecast for Asia's fourth-largest economy to 3.8 percent from 4.0 percent.

Weak domestic spending has been a source of concern.

South Korea's new finance minister unveiled stimulus measures in July to encourage spending by consumers and companies.

The bank was expected to aid the government's stimulus moves as low inflationary pressure gives room for easing.

The sinking in April of the Sewol ferry killed 294 people and left 10 missing, mostly teenagers on a school trip, causing a national outpouring of grief.

Consumer spending shrank in the April-June quarter, hitting its lowest in nearly three years.

1. Bank of Korea governor Lee Ju-yeol chairing monthly monetary policy meeting

2. Lee bangs gavel at start of meeting

3. Various of meeting

4. Lee walking into media briefing room

5. Tilt up of Bank of Korea sign to Lee speaking during briefing

6. SOUNDBITE (Korean) Lee Ju-yeol, Governor of Bank of Korea:

"Today, at the Bank of Korea monetary policy meeting, a monetary policy has been adapted to lower the base interest rate from 2.50 percent to 2.25 percent."

7. Cutaway

8. SOUNDBITE (Korean) Lee Ju-yeol, Governor of Bank of Korea:

"The economic recovery of the US has been on the rise. However, in the European areas, economic recovery continues to show a weakened presence. In the case of newly emerged markets: in China, the flow of economic recovery has continued, but in some nations the economic activity has been in a continual slump, so differences by country have appeared. In the international stock market, because of the influence of geopolitical risks, interest rates and stock prices have fallen, the US dollar has strengthened, and there has been an increase in fluctuation."

9. Wide of Lee giving briefing

Surviving students of the Sewol ferry disaster on Wednesday attended a memorial service for classmates who died after the passenger ferry sank off the coast of South Korea.

Wearing white shirts and yellow ribbons - which became a symbol hope during the tragedy - the survivors grieved openly as they passed a wall of flowers on display for their classmates at a memorial in Ansan, a city near Seoul.

Students from Ansan's Danwon High School made up more than 80 percent of the dead and missing; they had been on their way to the southern tourist island of Jeju.

The director of the hospital where survivors were treated said those discharged on Wednesday showed no signs of serious symptoms but would be monitored on an ongoing basis.

In Jindo, meanwhile, the prime minister met experts to reassess the situation and to "reflect once again on whether there may be improvements or new approaches to be made".

Chung Hong-won offered his resignation over the government's handling of the sinking on Sunday, blaming "deep-rooted evils" in society for the tragedy.

Family members of those killed have dismissed as insincere President Park Geun-hye's apology for the government's handling of the disaster.

Two weeks after the ferry sank off South Korea's southern coast, divers have recovered 212 bodies from the wreckage.

They fought strong currents and floating debris inside the ship on Wednesday as they searched for 90 passengers still missing.

AP TELEVISION

Ansan

1. Various of Sewol ferry disaster survivors, in white shirts, grieving for classmates who died

2. Various of students arriving at memorial service

3. Various of students walking past flowers

4. Wide of memorial service

5. Ansan university hospital director Dr Cha Sang-hoon entering news conference

6. Wide of news conference

7. SOUNDBITE (Korean) Dr Cha Sang-hoon, Ansan university hospital director:

"In the case of the students who are being discharged, according to the examination results of the the medical team, there needs to be continued observation of any possible future symptoms that may appear. However, it is our judgement that the majority of the students do not currently show any serious symptoms that may lead to dangerous after-effects in the short-term. Our hospital will proceed with the treatment of the students and their guardians even after their discharge, and this will take place along with the school's psychiatric support programme."

8. Wide of news conference

Jindo

9. South Korean Prime Minister Chung Hong-won entering news conference

10. Cutaway of various experts at meeting

11. Cutaway of South Korean officials at meeting

12. Wide of news conference

13. SOUNDBITE (Korean) Chung Hong-won, South Korean Prime Minister:

"We have invited every one of you experts to this table to recap the situation and to reflect once again on whether there may be improvements or new approaches to be made. We felt there is a necessity to gather wisdom from experts in each sector."

14. Various of Chung at news conference

South Korean police continued to surround a church compound in Anseong on Thursday, in search of fugitive billionaire businessman, Yoo Byung-eun, believed to be involved in the sinking of the Sewol ferry in April.

Authorities believe Yoo owns the ship, and that his alleged corruption may have contributed to the disaster that left more than 300 people dead of missing.

Police and prosecutors have been after Yoo for weeks and are offering a 500-thousand US dollar reward for information surrounding his whereabouts.

The 73-year-old is a member of a group called the Evangelical Baptist Church, which critics say is a cult.

On Wednesday about 5,000 police officers, some wearing helmets and armed with plastic shields, raided the group's compound in Anseong, just south of Seoul, officers said on condition of anonymity, citing department policy.

Four church members were detained for allegedly providing shelter to Yoo or helping him flee, police said.

Another church member was detained for allegedly trying to obstruct the raid.

It was not clear whether Yoo was at the compound at the time of the raid.

The compound, the size of about 30 football fields, is considered the church's headquarters and thousands of members gather there for services on weekends.

The area contains ranches, fields, a fish farm and an auditorium that can house up to 5,000 people, according to media reports.

Yoo, head of the now-defunct predecessor of the ferry's current operator, Chonghaejin, allegedly still controls the company through a complex web of holding companies in which his children and close associates are large shareholders.

The government has offered a 100-thousand US dollar bounty for Yoo's eldest son, and one of his daughters was arrested in France late last month.

At a news conference in Seoul, South Korean Defence Ministry Spokesman Kim Min-seok said the troops patrolling coastal waters were "keeping a strict watch" on vessels coming in and out of harbours, in case Yoo tries to escape.

The sinking, one of South Korea's deadliest disasters in decades, has caused an outpouring of national grief, and the country is undergoing national soul searching about public safety.

Nearly two months on, 292 bodies have been recovered, mostly students from a high school near Seoul, and 12 people are still missing.

AP TELEVISION

Anseong, South Korea

1. Various of the highway near Geumsoowon, the headquarters of the Evangelical Baptist Church (so-called Salvation Sect)

2. Mid of Geumsoowon's front gate with police forming barricade

3. Close of police barricade

4. Various of police walking into Geumsoowon

5. Various of police coming out of Geumsoowon

6. Mid of police and reporters inside Geumsoowon

7. Wide of Geumsoowon's front gate

Seoul, South Korea

8. Mid of South Korean Defence Ministry Spokesman Kim Min-seok entering the news briefing

9. Wide of news conference

10. SOUNDBITE (Korean) Kim Min-seok, South Korean Defence Ministry Spokesman:

"Troops in charge of our coasts such as the southern coast and the western coast, are continuously checking for illegal migrants. They are especially keeping a strict watch on those coming in at night. Since there is also a possibility of Yoo Byung-eun being smuggled out at the same time, they are strengthening their guards and focusing on stowaways."

11. Medium of ministry officials

12. Wide of news conference

South Korea's central bank lowered its key interest rate to a record low on Wednesday in a further attempt to bolster the country's fragile economic recovery.

The Bank of Korea trimmed the key rate by a quarter of a percentage point to two percent for October.

It was the second rate cut this year after the central bank lowered lending costs in August following the deadly ferry disaster, the shock of which dented retail sales and other spending.

The bank on Wednesday also downgraded its growth forecasts for South Korea's economy, Asia's fourth-largest.

It said the economy would likely expand 3.5 percent this year, not 3.8 percent it forecast three months earlier, citing slower-than-expected improvements in capital expenditure and consumer spending.

Next year, South Korea's economy is expected to grow 3.9 percent, instead of four percent.

Analysts expected the rate cut as South Korea's finance minister had said the economic recovery was fragile.

The weak yen and a slow recovery of capital spending were also expected to dent the recovery of the export-driven economy.

Policymakers also saw weak sentiment among economic players as a risk to the economy.

In February 2009, the bank lowered its policy interest rate to 2 percent in the wake of the global financial crisis.

AP TELEVISION

Seoul - 15 October 2014

1. Bank of Korea Governor Lee Ju-yeol walking into BoK's monthly monetary policy meeting

2. Wide of meeting

3. Lee hitting the gravel to indicate the start of the meeting

4. Wide of meeting

5. Lee entering news conference

6. Wide of news conference

7. SOUNDBITE (Korean) Lee Ju-yeol, Governor, Bank of Korea:

"The monetary policy committee of the Bank of Korea decided today to lower the base rate from 2.25 percent to two percent."

8. Journalists at news conference

9. SOUNDBITE (Korean) Lee Ju-yeol, Governor, Bank of Korea:

"The committee will conduct monetary policy so as to maintain price stability over a medium-term horizon and pay greater attention to financial stability. In this process, it will closely monitor external risk factors, such as the shift in the US Federal Reserve's monetary policy stance, as well as the trends of household debt and of capital flows."

10. Shin Dong-joon, director and chief strategist of the Asset Research Department at Hana Daetoo Securities

11. SOUNDBITE (Korean) Shin Dong-joon, Director and Chief Strategist, Asset Research Department at Hana Daetoo Securities:

"Due to concerns that the overall global economy will slow down, it will be difficult for the South Korean economy to immediately get better because of the Bank of Korea's decision to lower the base interest rate. The South Korean government is expanding its fiscal policies, and overseas markets are in the exchange rate war by devaluating currencies. So these will allow us to combine policies supporting domestic consumptions and policies devaluating our currencies in the exchange market. I believe it will also lead to main agents' psychological stability."

12. Various of people shopping on Myeongdong street

13. SOUNDBITE (Korean) Kim Kyeong-mi, Company employee:

"Prices are already very high, so a product which used to be KRW100,000 now costs KRW150,000, so I worry a bit when I go grocery shopping."

14. SOUNDBITE (Korean): Lim Duk-soon, President, Coldwell Banker Commercial:

"Anyhow, as the base interest rate decreases, real estate transactions are more active, and an increasing number of people are trying to purchase buildings and shopping arcades. As the base interest rate is now lower, I think the real estate business will be more active."

15. Various of pedestrians

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SHOTLIST

AP TELEVISION - AP CLIENTS ONLY

Ansan - 16 April 2015

1. Relatives of Sewol ferry disaster victims and others entering the ceremonial ground in front of memorial stage

2. Various of relatives

3. Representative of the victims' families on stage

4. SOUNDBITE (Korean) Yoo Kyung-geun, spokesman for the victims' families:

"We decided to cancel the official memorial ceremony after we determined that all the citizens of South Korea including the "4.16 family" (group representing the relatives of the victims) are not worthy of commemorating the 295 victims and 9 missing students."

5. Empty seats reserved for government officials

6. Various of South Korean President Park Geun-hye's empty seat

7. SOUNDBITE (Korean) Kim Sang-gil, father of Sewol ferry victim Kim Seung-hyuk:

"(The government should) swiftly accommodate our message and quickly give answers so that the truth is revealed."

8. SOUNDBITE (Korean) Kim Mi-hyun, mother of Sewol ferry victim Park Sung-bin:

"Even after one year, everything stays the same. As helpless parents, it is terrifying to see our children dying, but at least we have to know why they died. We asked (the government) to find out the reason, but it is not being done."

9. Various of relatives hugging

10. Interior of memorial

11. Photos of victims on wall

12. Pan from civil organisation holding placards to the memorial area

STORYLINE

Angry relatives of passengers who drowned in the Sewol ferry disaster cancelled a memorial service in Ansan on Thursday, in protest against President Park Geun-hye's absence from the event.

More than 300 people died, mostly high school pupils, when the Sewol sank in cold waters off the south-western South Korean coast exactly one year ago.

The relatives expressed their anger over Park not visiting the memorial service even though they had set aside a chair for her and not providing a firm commitment for a deeper investigation into what they say is government responsibility for the sinking and botched rescue.

The families also claimed that Park should have delivered a more detailed plan for salvaging the ship during a speech earlier in the day, according to Pil Kyu Hwang, a lawyer representing the families.

Park made her speech during a visit to the small port near the site of the sinking to offer her condolences to the bereaved relatives.

Most, however, refused to meet her, in protest of the government's handling of the sinking, and had already left the port.

Also Thursday, South Korean lawmakers adopted a resolution urging the government to salvage the ferry.

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SHOTLIST

1. Exterior of VIP lounge at Changi airport

2. Indonesian Foreign Minister Hassan Wirajuda walking and shaking hands with airport official

3. Myanmar Foreign Minister Nyan Win walking along corridor

4. Win shaking hands with official

5. Cutaway of cameraman

6. Win getting into car

7. Car leaving

8. Thailand's Deputy Prime Minister Sahas Bandidkul walking out of airport

9. Sahas getting into car

10. Wide of Vietnamese Foreign Minister Pham Gia Khiem shaking hands with airport official

11. Wide of news conference

12. SOUNDBITE: (English) Andrew Tan, Conference spokesman:

"ASEAN has made it clear its position that the politics should not be meshed with the business of providing aid and offering humanitarian assistance itself. But within the family, ASEAN members will certainly discuss this issue and at the same time get an update from the Myanmar government on the state of political developments. It just had a referendum. They just extended Aung San Suu Kyi's arrest, and they're moving ahead with the roadmap 2010 election. So I think these issues should all be looked at."

13. Cutaway of journalists in news conference

14. SOUNDBITE: (English) Andrew Tan, Conference spokesman:

"The way ASEAN has survived all these years is not to allow bilateral disputes to actually affect the grouping's solidarity as well as the grouping's efforts to bank closer together as a regional community. So we encourage both sides (Thailand and Cambodia) to exercise restraint and also to resolve the issue peacefully."

15. Wide of news conference

STORYLINE:

Asia's annual security dialogue with the United States and Europe kicked off in Singapore on Sunday, weighed down by the recalcitrant regimes in North Korea and Myanmar, as well as spiralling food prices and disaster management.

A bubbling border confrontation between Cambodia and Thailand is the latest in a long list of security concerns facing Asian foreign ministers as they get together for the region's premier conference.

Foreign ministers from the 10-member Association of Southeast Asian Nations arrived in Singapore on Sunday ahead of a working dinner later in the day.

They will hold a series of meetings with counterparts from neighbouring countries, culminating in the main event on Thursday, known as the ASEAN Regional Forum (ARF).

At a news conference ahead of official meetings, a conference spokesman, Andrew Tan, spoke about some of the issues to be discussed during the summit.

These included the recent Thailand Cambodia border dispute that has seen both countries reinforce troops along a disputed border area.

"We encourage both sides (Thailand and Cambodia) to exercise restraint and also to resolve the issue peacefully," Tan told reporters.

Also on the agenda will be the behaviour of Myanmar's junta, which has done little to allow democracy and has refused to free opposition leader Aung San Suu Kyi from house arrest.

ASEAN has been criticised for doing little to force Myanmar, a fellow member, to change its ways, but was hailed for persuading the junta to accept international aid and relief workers after a devastating cyclone in May.

"ASEAN has made it clear its position that the politics should not be meshed with the business of providing aid and offering humanitarian assistance itself," Tan said.

"But within the family, ASEAN members will certainly discuss this issue and at the same time get an update from the Myanmar government on the state of political developments," he added.

The ARF comprises ASEAN and 16 countries plus the European Union.

In between will be the most keenly watched event on the sidelines of the conference: a meeting of US Secretary of State Condoleezza Rice, North Korean Foreign Minister Pak Ui Chun and their counterparts from China, Japan, South Korea and Russia, who are taking part in the six-party talks on Pyongyang's nuclear program.

It will be the highest level of contact between the six countries since 2003 when negotiations began to get North Korea to dismantle its nuclear program in exchange for political and economic incentives.

US State Department spokesman Sean McCormack said he did not expect Rice and Pak to meet bilaterally, but expected there would be an informal meeting of ministers taking part in the so-called six-party talks on the North's nuclear programme.

The optimism over North Korea notwithstanding, the forum is clearly worried about the security situation in the region.

"Despite the ARF's best efforts ... security threat and challenges that could undermine the peace, security and stability of the region still exist," said a draft of the statement that will be issued at the end of the meeting. The draft was obtained by The Associated Press.

Disaster relief and management will be another main topic of discussion in the wake of the Myanmar cyclone, the May earthquake in China and a recent ferry sinking in the Philippines.

The participants are expected this week to pledge to intensify cooperation on disaster relief and management. Among the steps being discussed is the setting up of an interim ASEAN Coordinating Centre for Humanitarian Assistance in Jakarta, Indonesia.

Security for Asia is not only in terms of traditional military conflicts but also the "growing challenge posed by rising oil and food prices," said a draft statement of a separate ASEAN declaration.

The problems "pose a serious challenge to our peoples' welfare as well as our countries' continued economic development," said the draft.

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SHOTLIST

AP TELEVISION - AP CLIENTS ONLY

Seoul - 24 April 2015

1. Thousands of people attending protest by Korean Confederation of Trade Unions in central Seoul

2. Protesters holding up posters reading (Korean) "Demanding the basic labour rights"

3. Poster reading (Korean): "President Park Geun-hye must step down!"

4. Various of protesters holding red banners reading (Korean) "Let's end, Park Geun-hye! Let's go! Strike!"

5. Seated protesters raising clenched fists

6. President of Korean Confederation of Trade Unions Han Sang-goon

7. SOUNDBITE (Korean) Han Sang-goon, President of Korean Confederation of Trade Unions: ++AUDIO AS INCOMING++

"The Park Geun-hye government must change the current policies favouring the chaebol (South Korean form of business conglomerate) to a caring policy for the labourers. We are demanding to solve the temporary worker problem and to raise the minimum wage."

8. Protesters singing on stage

9. Protesters with clenched fists singing

10. Protesters holding up signs

11. Various of protesters carrying flags of labour unions through crowd

12. Flags flying during protest

13. Protesters seated

STORYLINE

Thousands took part in anti-government protests in cities across South Korea on Friday denouncing the labour policies of an increasingly unpopular President Park Geun-hye.

The rallies were orchestrated by the country's largest umbrella labour union.

They come about a week after police clashed violently in the capital Seoul with demonstrators denouncing the government's handling of a ferry disaster that killed more than 300 people a year ago.

A spokesman from the Korean Confederation of Trade Unions said demonstrators were demanding an end to the country's temporary worker problem, and an increase in the minimum wage.

Labour organisations are critical of policies they say will reduce wages and job security as well as being unhappy with a revised pension system for government employees and the economic dominance of family-owned conglomerates known as chaebol.

Organisers said the rally of 10,000 people in Seoul was held without significant conflict with police.

However, sporadic clashes were reported in other cities.

Another large rally is planned in Seoul on Saturday when unionised workers plan to join groups supporting the families of the ferry disaster victims.

They have been calling for the government to allow a more thorough investigation into the cause of the sinking.

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(i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: info@aparchive.com

(ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service

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