The government has announced the details of its five.nine billion U.S. dollar supplementary budget, mainly targeted at boosting the local economy.
The planned stimulus package allocates 1.three billion dollars to tackle fine dust, including subsidies for replacing 400-thousand old diesel-powered cars as well as providing face masks for vulnerable social groups and construction workers.
Around 612 million dollars will be used to strengthen safety measures, such as improving the response to wildfires by increasing the number of wildland fire fighters from 300 to 435 people and providing more helicopters.
3.nine billion dollars, almost two-thirds of the budget, will be used to help boost the economy by increasing export credit financing and supporting areas like the southeastern city of Pohang, which is still recovering from the 2017 earthquake.
"We expect the stimulus package to help create around 73-thousand new jobs."
The finance ministry added that the extra budget could help build recovery momentum in the second half of the year and boost domestic growth by zero.one percentage points this year, as well as cutting 7000 tons of fine dust.
The proposed stimulus comes amid falling export growth in the country. Exports contracted for the fourth consecutive month, down 8 percent on-year in March amid slowing global trade and chip demand.
The IMF had recommended last month that the Korean government injects seven.nine billion dollars of stimulus, or zero.five percent of the country's nominal GDP, if it is to meet the government's growth target of between 2.six and 2.seven percent for the year.
The government will submit the supplementary budget bill to parliament on Thursday.
If passed, it will be the Moon administration's third extra budget bill, with around three billion dollars coming in the form of government bond issuance.
Kim Hyesung, Arirang News.