S.Korea beef protests cost economy $2.5 bln-study

More than two months of protests in South Korea against a U.S. beef deal and the policies of the new president have cost Asia's fourth-largest economy about $2.5 billion, a study released on Tuesday said.

South Koreans have clogged Seoul streets on a near-nightly basis since early May, in protests that have caused a crisis for President Lee Myung-bak and his four-month-old government.

The protests have paralysed transport in the capital and delayed Lee's plans to introduce reforms such as tax cuts across the economy and mortgage-debt relief for low-income households due to a sharp fall in his support rate.

The report, from the Korea Economic Research Institute, said the total damage to the economy was about 2.6 trillion won ($2.52 billion).

The figure included 668.5 billion won in direct losses through lost sales, decreased production and public spending on items such as deploying police to the protests.