Finance minister vows supplementary spending to fight MERS fallout

Finance Minister Choi Kyung-hwan vowed Thursday to increase the supplementary budget to help overcome the economic fallout from the spread of the MERS virus and drought.

"Through sufficient reinforcement of finance, (the government) will overcome current issues like the Middle East Respiratory Syndrome and drought," Choi said in a policy coordination meeting with the ruling Saenuri Party.

The remarks came as the spread of MERS continues to cripple the economy.

South Korea reported two more deaths from MERS on Thursday, bringing the death toll to 29. The number of people diagnosed rose to 180, with consumers shunning public places like shopping malls and entertainment facilities for fear of possible infection.

The finance minister said the shock from the MERS virus may cause the economy to tumble from its initially estimated growth trajectory, especially in the sectors of consumption and service.

"The trend of economic recovery wasn't that strong due to sluggish exports and other issues, and sustaining the MERS shock, the economy may not catch up with the originally projected growth course," he said.

"In the one and a half months after the outbreak of MERS, the negative impact started to appear quickly mainly in the consumption and services industries," he said.

 The Finance Ministry had predicted Asia's fourth-largest economy to grow 3.8 percent in 2015, but even before the MERS scare, the target was revised down to the low 3 percent range.

Even if the MERS outbreak was brought under control in the near future, it may still leave a negative effect on the entire economy, he said, pledging to mull proactive measures to fight. (Yonhap)