South Korea agrees on new economic stimulus programme
South Korea plans an extra budget totalling 28.9 trillion won (20.3 billion dollars) to revive the country's flagging economy, officials said Tuesday.
The measures include cheap credits, infrastructure projects, job training and help for low income groups, the finance ministry said, according to dpa.
The government hopes the package will lead to the creation of more than 500,000 jobs and increase growth by 1.5 per cent.
Equivalent to 1.9 per cent of gross domestic project (GDP), the package is expected to be presented to the National Assembly for a vote in April.
The measures come on top of the more than 50 trillion won the government has made available to help the economy since the start of the global economic crisis.
But the new funding includes 11.2 trillion for projects already announced and whose funding has become uncertain because of declining tax revenues.
Some 3.5 trillion won is meant for the creation of new jobs and the preservation of other jobs that might be under threat.
"Job creation is the best welfare policy and the most fundamental measure that underpins our efforts to get over the economic crisis," said Finance Minister Yoon Jeung Hyun.
South Korea, Asia's fourth-biggest economy, is heading for its first recession since the days of the Asian crisis in 1997-98. Projections say GDP will shrink 2 per cent this year.