South Korea Began Stimulus Fiscal package of $10 billion for Job Sector

South Korea will release a stimulus package worth 11.2 trillion won equivalent to $10 billion U.S. dollars on Monday. This will support social welfare subsidy and part of methods for achieving the pledge of President Moon Jae-in to generate 810,000 jobs in the public sector. It is the first supplementary budget for work sector according to the country’s chief of budget Park Chun-sup.

In particular, about 5.4 trillion won is allotted for social welfare jobs such as educators, firefighters, postal employees as stated by the finance ministry while  2.3 trillion won will fund financial aid for maternity leave and medical assistance for elderlies. Overall, It is anticipated to increase 71,000 jobs for the public sector and 15,000 jobs for the private sector.

This strategy is anticipated to stimulate economic growth by 0.2 percent for the year and augment the 2017 outlook from 2.6 percent. It is also supposed to boost both income and consumption as disposable household income dropped by 1.1 percent in the fourth quarter while private consumption rose by 0.4 percent but is still lower than the overall economic growth.