Nov

4

South Korea Plans $11 Billion Boost to Economy

Filed Under Economy | Leave a Comment

South Korea plans to introduce a stimulus package worth $11 billion or 14 trillion won next year in order to fight the biggest financial crisis to grip the nation since it required IMF aid almost a decade ago.

In an attempt to boost the flagging South Korean economy, the country’s finance minister Kang Mang Soo announced that the government will come up with a 14 trillion won stimulus package in 2009 of which 4.3 trillion won will be spent on regional infrastructure. Another 3 trillion won will be provided for tax benefits and mainly extended to investments made in factories. The South Korean government has already approved relief measures of up to 33 trillion won this year.

The news of an economic stimulus package was well-received by the financial markets in South Korea which witnessed a rise in both currency and stocks. According to government agencies, the stimulus plan will add another percentage point to economic growth next year and generate at least 200,000 jobs in the country. Last week the central bank of South Korea cut benchmark rates by a record percentage point and was offered aid worth $30 billion by the US Federal Reserve after local financial markets plunged to new lows.

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google
  • Live
  • Technorati