Korea's chief economic policymaker on Wednesday said he will use all fiscal means to get over the lingering downside risks at home and abroad and revive the growth momentum in Asia's fourth-largest economy.
"As we are in severe economic conditions inside and outside the country, we have to take an aggressive (fiscal) stance to deal with mounting risks," Finance Minister Yoo Il-ho said in a parliamentary session in Seoul.
"The government will carry out corporate restructuring, job creation programs and other economy-boosting measures in a timely manner."
On Tuesday, the government unveiled a set of stimulus steps, including a plan to draw up a 10 trillion-won(US$8.6 billion) extra budget, to buttress the economy that has been suffering from waning exports and flaccid domestic demand.
Korea's exports posted negative growth for a record 17 straight months as fast falling oil prices dampened demand from emerging markets.
Retail sales have seemed to offset the downturn in outbound shipments on the back of the government-led tax-cut programs and temporary holidays, but recent data show that the upbeat trend is slowing down to some extent.
The combined sales of three department stores fell 2.7 percent on-year last month and those of major discount stores also retreated 6.3 percent. Meanwhile, sales of passenger cars jumped 18.9 percent on-year in March on the back of tax benefits, but their growth also slowed to 5.8 percent in April.
He said sluggish exports have weighed heavily on domestic demand, hurting consumer sentiment and corporate investment. Rising financial uncertainties throughout the world, triggered further by the recent British vote to leave the European Union, or Brexit, are feared to further sap demand here.
"We will minimize the downside risk and invigorate the economy through the expansionary fiscal policy and other stimulus measures," said Yoo, who is also double hatted as the deputy prime minister for economic affairs. (Yonhap)
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