Gov't to expand financial support for public projects

SEOUL, Feb. 26 (Yonhap) -- The government said Thursday it will increase
financial support for public construction projects to encourage private-sector
participation as part of a wider effort to stimulate slumping domestic demand.
The state-run Korea Development Bank will extend 1 trillion won (US$660 million)
in special loans to companies joining in new public development works this year,
the Ministry of Strategy and Finance said in a statement.
The government will also provide 2 trillion won worth of debt guarantees for such
projects through a state-run agency. The move is part of a government-led drive
to create new jobs and boost sagging domestic demand.
South Korea is struggling to avert what would be the first recession in more than
a decade. The nation's economy, Asia's fourth-largest, is expected to shrink 2
percent this year and lose around 200,000 jobs compared with 2008.
The government plans to spend roughly 12 trillion won on public projects in which
private firms will be encouraged to participate to build roads and schools this
year, according to the ministry.
kokobj@yna.co.kr
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