Gov't to spend 6 tln won to save, create jobs: officials

SEOUL, March 16 (Yonhap) -- The government will spend around 6 trillion won (US$4
billion) to maintain or create jobs as part of its efforts to help citizens tide
over a protracted economic slowdown, officials said Monday.
The amount is part of an estimated 30 trillion won extra budget the government is
crafting to kick-start the fast slumping economy. The Ministry of Strategy and
Finance is expected to finalize the additional budget this week and send it to
the National Assembly next month for approval.
"Sooner or later, the government will announce its extra budget mainly focused on
helping save, share and create jobs," an official close to the matter said. "The
scale of job-related expenditure will be similar to the recently unveiled
spending plan aimed at supporting low-income people."
On Thursday, the finance ministry unveiled 6 trillion won worth of measures aimed
at helping low-income people survive the current economic crisis. Under the plan,
assistance will be given in the forms of cash, consumption coupons and other
subsidies.
Though details have yet to be finalized, officials said that the government will
spend much of the job-related budget in expanding unemployment benefits,
supporting job saving at small companies, and providing job training.
Additional money will also be earmarked to expand the number of public work
positions, while financial help will be offered for companies to employ interns.
The move comes as the government says that its top priority is to maintain or
generate jobs at a time when the economy is feared to slip into a recession for
the first time in more than a decade.
Buffeted by a deepening global economic slowdown, local companies are cutting
production and scaling back recruitment for fear of growing economic uncertainty.
According to the Labor Ministry, the number of people who received jobless
benefits hit a monthly record-high of 400,000 in February, costing the government
around 310 billion won.
Finance Minister Yoon Jeung-hyun earlier predicted that the economy will contract
2 percent this year, with a total of 200,000 jobs to be lost compared with a year
earlier.
In January, the government announced what it called "green new deal" under which
about 50 trillion won will be invested to create nearly one million jobs in
eco-friendly areas.
On Sunday, the government said that it will offer tax benefits not only to
companies but also to employees joining in job sharing efforts, under which firms
cut the salaries of existing employees and use the savings to maintain payrolls
or recruit more.
kokobj@yna.co.kr
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