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Gov't to Utilize More Funds for Economic Recovery

June 04, 2012 13:40|July 04, 2012 13:07
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The Korean government plans to increase the amount of government-run funds such as Korea Credit Guarantee Fund up to 30 percent to stimulate the economy.

“The government will put emphasis on growth in the second half since the government's economic stabilization measures it has propelled so far are producing results thanks to stabilization of prices and international oil prices,” said Strategy and Finance Minister Bahk Jaewan at a meeting with journalists recently.

In particular, the ministry is considering raising the size of regular state-run funds by 20 percent and public financial funds by 30 percent, Bahk said, adding the government will expand supports for small- and medium-sized firms and export-oriented companies.

Bahk's remarks came at a time when the government's growth target for 3.7 percent for this year is forecast to be hard to achieve due to the contagion of the European financial crisis and the sputtering Chinese economy.