[THE INVESTOR] President Park Geun-hye on June 28 urged the National Assembly to pass the government’s plan for an extra budget without delay, stressing it is aimed at supporting workers who could lose their jobs amid the restructuring of ailing shipping and shipbuilding industries.
During a meeting with economy-related ministers, she stressed that given South Korea’s strong economic fundamentals and relatively small bilateral trade with Britain, the impact of Brexit would be “limited.”
“To support the suffering citizens, the government has decided to draw up a supplementary budget,” she said during the meeting that was attended by 40 officials, including members of the National Economic Advisory Council.
“When it comes to economics, the trends are important, whereas the timing is critical for policy implementation,” she added, stressing that the extra budget should be swiftly executed to ensure that the efforts to stimulate the economy will show tangible progress in the latter half of this year.
At the meeting, the government unveiled its plan to execute more than 20 trillion won (US$16.9 billion) in extra spending this year, including a supplementary budget worth 10 trillion won, to help generate jobs and support the country’s growth, which is expected to be hit further by Brexit-fueled uncertainties and the ongoing restructuring of major industries.
Though she downplayed the impact of Brexit, Park cautioned against potentially negative ramifications including volatility in the global financial market.
“We need to keep a close watch as global market uncertainties could have a negative impact on us any time through foreign capital flight and other developments,” she said.
To rapidly respond to Brexit-related situations, the government said it would continue to maintain a 24-hour monitoring system.
The president also pointed to uncertainties in the Chinese economy and geopolitical risks stemming from a provocative North Korea as “elements of economic burden.”
During the meeting, government officials also agreed on a series of measures to encourage the use of eco-friendly vehicles and strengthen deregulation efforts to boost the growth of new industries.
The government, moreover, reaffirmed its resolve to push for its economic reform drive to ensure that the ongoing restructuring of the ailing industries, including the shipbuilding industry, proceeds smoothly.
Park has pushed for a series of legislation to reform four major sectors -- labor, finance, education and public services. But the efforts have failed to make substantial progress due to a lack of parliamentary support.
“We need to make efforts to quickly pass the legislation for labor reform, which is necessary to support those who have lost jobs in the restructuring process, by creating new jobs,” she said.
Later in the day, Park will meet with the “Wise Men’s Group” in charge of North Korea’s human rights issues. During the meeting, she is expected to discuss the latest missile provocations by the communist regime.
(
theinvestor@heraldcorp.com)