S. Korea faces tougher economic challenges amid global turmoil: minister

SEOUL, March 4 (Yonhap) -- South Korea faces tougher economic challenges as
global financial turmoil and recession woes deepen, a top policymaker warned
Wednesday, but the government will remain "calm" and take necessary measures as
planned.
"After showing some signs of stabilizing, the global economy was rattled again
recently by growing default risks in Eastern Europe and jitters over
nationalization of major banks in the U.S.," Finance Minister Yoon Jeung-hyun
said during a weekly crisis management meeting.
"Given that South Korea is under the direct influence of the global economy, it
is inevitable to see things get worse down the road. Despite these challenges,
the government will stay calm and take action as initially planned."
The minister said the details of an extra budget plan would be announced "soon,"
adding that work on the plan is in its "final" stage but stopping short of giving
details, including its size.
He said earlier that the government will submit its extra budget plan to
parliament this month for approval. The budget will be used to create more jobs
and revive frozen domestic demand, he added.
Gripped by the global recession, South Korea's economy is expected to post its
first minus growth this year in more than a decade. Yoon predicted the economy
will shrink 2 percent this year compared with a 2.5 percent advance in 2008,
costing the nation around 200,000 jobs.
kokobj@yna.co.kr
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