Gov't to invest US$9 billion in H1 to revitalize economy
- 9 years ago
The government is planning to focus on boosting domestic demand in the first half of the year amid deflationary pressures.
One of the ways it plans to achieve that goal is to inject 9 billion U.S. dollars into the economy.
Shin Se-min has the details.
The government will spend the money in its economic revitalization fund earmarked for the entire year,... or roughly 9 billion U.S. dollars,... in the first half of the year.
The decision comes amid a growing urgency to help lift the economy out of the doldrums.
The money is from the 41-billion-dollar revitalization fund set up by the finance ministry last year, according to a finance ministry official.
The nation's economic outlook is still foggy.
The latest corporate sentiment index hit a six-month low last month,... as local companies are anxious about the unfavorable business conditions.
And the consumer sentiment index?
It's still lower than the level recorded last May,... right after a drop in consumer sentiment following the Sewol-ho ferry disaster in April.
The state-run Korea Institute of Public Finance says that allocating a larger chunk of the fund in the first half of the year will help grow the economy by point-2-3 percentage points as opposed to disbursing it evenly throughout the year.
With the move, the government hopes to garner investment, create more jobs and stimulate domestic spending,... to prevent the economy from falling into a deflationary period.
The government also said that it aims to carry out structural reforms,... while pressing large conglomerates to raise the minimum wage... to revive the economy.
Finance Minister Choi Kyung-hwan has repeatedly emphasized the need to raise the minimum wage.
But not everyone seems to agree,... as Samsung Electronics,... considered a key player in corporate Korea,... has decided to freeze its wages.
Shin Se-min, Arirang News.
One of the ways it plans to achieve that goal is to inject 9 billion U.S. dollars into the economy.
Shin Se-min has the details.
The government will spend the money in its economic revitalization fund earmarked for the entire year,... or roughly 9 billion U.S. dollars,... in the first half of the year.
The decision comes amid a growing urgency to help lift the economy out of the doldrums.
The money is from the 41-billion-dollar revitalization fund set up by the finance ministry last year, according to a finance ministry official.
The nation's economic outlook is still foggy.
The latest corporate sentiment index hit a six-month low last month,... as local companies are anxious about the unfavorable business conditions.
And the consumer sentiment index?
It's still lower than the level recorded last May,... right after a drop in consumer sentiment following the Sewol-ho ferry disaster in April.
The state-run Korea Institute of Public Finance says that allocating a larger chunk of the fund in the first half of the year will help grow the economy by point-2-3 percentage points as opposed to disbursing it evenly throughout the year.
With the move, the government hopes to garner investment, create more jobs and stimulate domestic spending,... to prevent the economy from falling into a deflationary period.
The government also said that it aims to carry out structural reforms,... while pressing large conglomerates to raise the minimum wage... to revive the economy.
Finance Minister Choi Kyung-hwan has repeatedly emphasized the need to raise the minimum wage.
But not everyone seems to agree,... as Samsung Electronics,... considered a key player in corporate Korea,... has decided to freeze its wages.
Shin Se-min, Arirang News.