South Korea to infuse $13 billion to boost growth

South Korea to infuse $13 billion to boost growth

The government in South Korea has announced that it will infuse more than 15 trillion won or $13 billion on Thursday in order to boost economic growth as the MERS virus affects the economic growth.

The government announced a financial packageincluding a supplementary budget in order to boost growth as its economy faces pressure.South Korean Finance Minister Choi Kyung-hwan pointed out that there were concerns that the supplementary budget might affect the soundness of the economy but it will be beneficial in the long term.

Finance Minister Choi said, "We were contemplating a supplementary budget to make up for tax revenue shortfall as global growth had been very weak from the start of the year. Then MERS happened and we had to do it."

The government officials said that the funding for the supplementary budget would come from sales of short-term treasury bonds. The government is planning to finalise supplementary budget by early July.Choi pointed out that he was concerned growth will lag below 1 percent in the second quarter and also said that low growth rate could continue.

He pointed out that Middle East Respiratory Syndrome outbreak could reduce economic growth by 0.2 to 0.3 percentage points.MERS affected 180 patients and 29 had died from the virus as of Thursday.

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