Finance Minister Choi Sang-mok speaks during an emergency economic-related ministers' meeting in Seoul on Tuesday. (Yonhap)
Finance Minister Choi Sang-mok said Tuesday the government will administer more than 65 percent of this year's fiscal spending in the first half in a move to boost domestic demand and support vulnerable people.
"It would be far from easy for the people to feel an economic recovery in the first half due to high inflation and interest rates," Choi said during an emergency economic-related ministers' meeting.
"The government will administer more than 65 percent of this year's budget, a record level, in the first half, for projects on social welfare, job creation and social overhead capital," he added.
Late last year, the Cabinet approved the government's plan to front-load up to 75 percent of fiscal spending for 2024, or 412.5 trillion won ($317.79 billion) out of 550 trillion won, during the January-June period.
The government has vowed all-out efforts to prop up economic growth momentum, and support low-income and other vulnerable people amid weak domestic demand, though the economy has shown signs of a turnaround led by rising exports.
Meanwhile, the government decided to dispatch four vessels along European routes to provide extra container space for local exporters in response to the crisis in the Red Sea.
Carriers have rerouted away from the crucial Middle East route due to a wave of attacks by Iranian-backed Houthi militants based in Yemen, which has led to longer shipping times and the shortage of container storage spots at port
"Geopolitical uncertainties have heightened in the Red Sea, though we've had no major issues in exports, as well as energy imports. The government will strengthen logistics support for smaller companies," Choi said.
The four ships will have a capacity of up to around 29,000 twenty-foot equivalent units combined, according to the ministry. (Yonhap)
MOST POPULAR