S. Korea pushes for 10 tln won extra budget to boost economy

The Ministry of Strategy and Finance is looking to devise a supplementary budget worth 10 trillion won to boost jobs and support the middle class.

At is confirmation hearing on Tuesday, deputy prime minister Hyun Oh-seok, the nominee for the minister of strategy and finance said the ministry would need to consider devising a supplementary budget in line with the government’s macroeconomic policy.

It will further look into ways to raise the budget in terms of timeline by comprehensively viewing all economic factors, Hyun said at the hearing.

President Park Geun-hye is expected to discuss the matter with her economic advisors and Cabinet members this Friday, and plans to announce her economic policies and measures next week, according to the Ministry of Finance.

The supplementary budget worth 10 trillion won would most likely be raised through the issuances of state bonds, and the Ministry of Finance’s budget division is currently devising this spending scheme.

The funds will be used to finance the creation of jobs, as well as to support businesses related to the middle class, as pledged during President Park’s campaign, which focused on job growth and sustainability of small and medium enterprises rather than GDP growth and conglomerates.

The president is seeking to boost Korea’s employment rate to 70 percent, while eliminating practices of discrimination against non-regular or part-time workers.

The economic policy, slated to be announced next week, is not likely to include real estate measures.

By Park Hyong-ki
(hkp@heraldcorp.com)