South Korea Injects 65 Trillion Won To Revitalize Economy in 2017

South Korea will inject more than 65 trillion won to revitalize the momentum of the economy in 2017 due to rising uncertainties and faltering exports in the global market.

The Korean government set aside more than 16 percent of the total budget of 400.7 trillion won to revitalize the economy, boost exports and support small- and mid-sized enterprises (SMEs).

Some of the 600 billion won which increased by 42.5 percent from the previous year was assigned for boosting exports according to the ministry of Trade, Industry and Energy.

There is a record of 19 consecutive months of losing streak in January last year. However, the outbound shipments of South Korea increased a 2.6 percent in August.

Because of the slowdown of the world economy and financial turmoil appeared in a US rate hike, experts remained alarmed in the situation. The South Korean government plans to create an export voucher program worth 177.8 billion won that will give consulting services and other benefits to the troubled local exporters in the country.

Moreover, a total of 8.1 trillion won will be set aside to foster SMEs in 2017 with 2.4 trillion won for the startups and venture firms. Some of the 15 billion won will be used to advertise exports of potential sectors like fashion, cosmetics, and pharmaceutical.

Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co., who are the industry leaders, will lead the local shipbuilding sector with a budget of 1.7 trillion won that faces massive layoffs and contracted demand.

The bulk of the 2017 budget will be spend on expanding the transportation network, providing jobs,and creating urban re-development projects.