Deputy Prime Minister and Finance Minister Koo Yun-cheol presides over a meeting of economy-related ministers held on the 19th in the main conference room of the Government Complex Sejong. (Yonhap)
SEJONG, Nov. 19 (Korea Bizwire) – South Korea’s finance minister said Wednesday that signs of an economic rebound are becoming increasingly evident, pointing to aggressive fiscal spending and more targeted policy management as key drivers.
At a meeting of economy-related ministers in Sejong, Finance Minister Koo Yun-cheol said consumer spending has begun to strengthen, helped in part by government-funded “consumption coupon” (stimulus coupon) programs, while exports — the backbone of the country’s growth — continue to show steady improvement.
“Our economy’s recovery is becoming more pronounced,” Mr. Koo told officials.
He added that the government is now focused on ensuring that the recovery spreads beyond the Seoul metropolitan area, where growth and investment have long been concentrated.
On July 27, the first weekend following the distribution of livelihood recovery consumption coupons, a sign indicating that coupons are accepted is posted at a shop in Cheongnyangni General Market, Dongdaemun District, Seoul. (Yonhap)
To that end, the finance ministry said it plans to revise national contracting and procurement rules to give local governments more autonomy and support regional industries. Twenty-six major public institutions also intend to increase their combined investment to 69 trillion won, or about $47 billion, up from the initial plan of 66 trillion won.
Among the measures under consideration is a substantial expansion of region-restricted bidding for public construction projects. The bidding rules — currently capped at 8.8 billion won for public institutions and 10 billion won for local governments — would be extended to projects valued at up to 15 billion won, a move aimed at boosting the participation of local builders and stimulating regional economies.
M. H. Lee (mhlee@koreabizwire.com)
