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Full implementation of state budget urged

Nov 07, 2019

Sejong (South Korea) Nov 7: South Korea's vice finance minister called Thursday for a full implementation of this year's budget in a move to boost the country's slowing economy.
Koo Yun-cheol said the government will mobilize all resources to fully spend this year's budget of 469.6 trillion won (US$404 billion) as planned.
In August, South Korea's parliament passed a 5.83 trillion-won extra budget bill to counter downside economic risks and cope with Tokyo's restrictions of exports to Seoul of high-tech materials, among other things.
Koo made the comments in a meeting with senior officials of the ruling Democratic Party and the government at the National Assembly.
The comments came amid concerns that South Korea may miss its growth target this year due in part to slowing exports.
South Korea's exports plunged 14.7 percent on-year to US$46.78 billion in October, extending their slump to an 11th consecutive month due to weak prices of semiconductors, and a trade row between the United States and China.
"The Korean economy is exhibiting sluggishness mainly in exports and investment," the state-run Korea Development Institute (KDI) said in its English-language Monthly Economic Trends publication. "Due to shrinking exports, all industry production posted slowing growth mainly in manufacturing.
Koo also said the South Korean government has allocated 4.7 trillion won to data, artificial intelligence and system semiconductors, as well as bio-health and future cars in next year's budget.
"Transforming the growth model into an innovative growth one is an inescapable choice," Koo said in a forum in Seoul, citing a looming demographic decline and dwindling working age population.
South Korea has been seeking to boost big data, fifth-generation network services, smart factories, bio-health, artificial intelligence, the hydrogen economy and other innovative sectors as new growth engines amid slowing exports and investment.
On Wednesday, Standard & Poor's affirmed its AA sovereign credit rating for South Korea, despite earlier slashing its growth outlook for Asia's fourth-largest economy.
The global rating agency also maintained its stable outlook for the South Korean economy.
S&P has three times revised down its growth outlook for the South Korean economy this year from 2.6 percent in January to 2.4 percent in April and 2 percent in July, again slashing its growth outlook for the country to 1.8 percent last month.
Source: Yonhap