The South Korean government unveiled a 76 trillion won ($62 billion) "New Deal" spending plan to reshape the economy in the aftermath of the pandemic after slashing its growth forecast for the year.
The plan, first outlined by Moon in April, aims to refocus the economy through 2025 by supporting job growth and new industries. It will partly be funded by a third extra budget now being drafted, according to a statement on the policy outlook for the second half.
The extra spending will help an economy forecast to grow by just 0.1 percent this year, the slowest expansion since the 1998 Asian financial crisis. The latest projection was more optimistic than the contraction expected by the Bank of Korea and private economists, but the government acknowledged downside risks to its view should a second virus wave emerge.