Gov't plans to 'steadily' normalize stimulus measures

SEOUL, Dec. 16 (Yonhap) -- The government will keep its expansionary
macroeconomic policy "for the time being" but plans to "steadily" roll back
stimulus measures, while taking into account economic and labor market
conditions, the finance ministry said Wednesday.

In its 2010 plan submitted to President Lee Myung-bak, the Ministry of Strategy
and Finance also said it will continue with efforts to encourage corporate
investment and create jobs, to help support people suffering from the economic
slump.
"We will stick to our expansionary macroeconomic policy stance for the time being
to bolster the rebound," the ministry said in the plan, "but we will seek to
normalize the policy direction steadily while monitoring economic and employment
conditions."
"The measures temporarily introduced to help survive the crisis will be withdrawn
steadily so as not to cause a sudden impact. To that end, we will take proper
actions," the ministry added.
The plan is broadly in line with the economic blueprint the ministry announced on
Dec. 12, in which it upwardly revised its growth outlook to 0.2 percent for this
year and 5 percent for 2010.
The ministry said that its plan for next year focuses on two things: the
"successful" survival of the economic crisis and laying the groundwork for future
growth. Towards those goals, job creation is its top priority.
The nation has been losing jobs this year as companies have trimmed recruitment,
fearing business conditions could again deteriorate. Government efforts to create
jobs in the public sector have helped ease employment conditions.
The ministry said it will continue to offer jobs in the public sector until the
end of the first half of next year. Efforts will be made to provide positions to
young people, senior citizens, women and others having difficulty in finding
jobs, it added.
Hoping to strengthen the country's long-term growth potential, the ministry also
said it will encourage corporate investment by cutting through red tape hampering
start-ups. It will also establish a 3.5 trillion won (US$3 billion) fund operated
until 2012 to help small firms in the tech and green business sectors, along with
other areas with high growth potential.
Regarding the G-20 summit being held here in November, the ministry said it will
work hard to make it a success and a chance for the nation to burnish its
international image and head towards joining the ranks of advanced countries.
In a related move, the ministry said it will step up its role in the
international community by expanding aid to poor and developing countries, while
also taking the lead in regional cooperation.
kokobj@yna.co.kr
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