South Korea Economic Stimulus
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About South Korea economic stimulus
A South Korea economic stimulus was announced by national government on 3rd of November, 2008 fiscal. Its aggregate value was 14 trillion won or $11 billion. This economic stimulus package has assumed importance in wake of worst impending financial crisis in 10 years. Such a situation was faced by South Korea in previous decade, when they had to be bailed out by International Monetary Fund.
About South Korea economic stimulus
A South Korea economic stimulus was announced by national government on 3rd of November, 2008 fiscal. Its aggregate value was 14 trillion won or $11 billion. This economic stimulus package has assumed importance in wake of worst impending financial crisis in 10 years. Such a situation was faced by South Korea in previous decade, when they had to be bailed out by International Monetary Fund.
As per reports, amount of public expenditures of South Korean government would go up by 11 trillion won in coming financial year. Rest of this package, which comes down to 3 trillion won, is supposed to be utilized for tax related benefits for its populace.
Other economic stimuli of South Korea
Two weeks prior to this particular economic stimulus package announcement, national government of South Korea had pledged another package, whose aggregate worth was 5 trillion won. It was supposed to provide support to construction industry. Its area of focus was to be on purchase of lands. A package, worth 130 billion dollars, had also met with approval from National Assembly in last phase of October. That South Korea economic stimulus package was meant to lend stability to financial sector of its nation through provision of credit guarantees. This package also looked to provide new capital that addressed liquidity crunch in export and banking sectors.
Present economic condition of South Korea
At present South Korea is facing economic hardships as an inevitable result of global financial recession of financial year 2008. Kang Man Soo, finance minister of South Korea, does not foresee a bright economic future for this country with predictions of 3 percent rate of economic growth in financial year 2008. There have been warnings of more economic slowdowns if present conditions continue to persist.
What is worrying for South Korean economy is that predictions of economic growth are going down every time a new forecast is made. During October 2008, Kang had forecast that there could be an overall growth rate of 4 percent for economy of South Korea in that financial year. This has been another addition in a long series of deductions in expected rates of growth for economy of South Korea in 2008 fiscal.
Details of South Korea economic stimulus
4 trillion won out of South Korean economic stimulus package has been earmarked for infrastructural projects that include roads, universities, schools and hospitals. There are other intended beneficiaries like small business enterprises, fishermen, medium business organizations, and families with low income.
