S. Korea seeks additional 14 tln won spending to stimulate economy

SEOUL, Nov. 3 (Yonhap) -- South Korea announced Monday that it will increase government spending by 14 trillion won (US$10.76 billion) next year as part of efforts to stimulate the slumping economy and help low-income households tide over the current financial turmoil.

The amount included a 10 trillion won expansion in budget spending, tax
incentives and other economic stimulus measures, according to the Finance
Ministry.
The ministry forecast South Korea's economy to grow around 4 percent next year
considering those stimulus measures, despite the latest financial woes and
growing jitters over a global economic slowdown.
Earlier this month, the ministry sent a 274-trillion won budget plan for 2009 to
the National Assembly for approval on assumption that next year's growth will be
around 5 percent.
"The ongoing global financial turmoil originated from the U.S. subprime mortgage
credit crunch is causing concerns over the global economic downturn. Financial
market uncertainties have been aggravated and are exerting a knock-on impact on
the real economy," Finance Minister Kang Man-soo told reporters in a press
briefing.
"(Against this backdrop), the economy may expand just around 3 percent next year
and it will difficult to achieve the growth if global economic conditions further
worsen," he added, emphasizing the need for such economic stimulus measures.