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(LEAD) Finance minister vows to speed up implementation of extra budget

All News 10:24 July 15, 2016

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SEOUL, July 15 (Yonhap) -- South Korea's finance minister on Friday said he will speed up efforts to roll out an extra budget in a "timely" manner, adding the detailed plan will be handed to the National Assembly this month.

"The timing is crucial when it comes to an extra budget," Finance Minister Yoo Il-ho said during a meeting with the ruling Saenuri Party. "The bill will be handed in to the parliament as soon as possible."

Yoo added the extra budget will be aimed at generating jobs amid the industrywide restructuring efforts.

"South Korea's economy has been facing uncertainties from home and abroad amid worries about industrial restrucuring and the Brexit issue," the policymaker said, adding employment conditions in the manufacturing sector have been deteriorating this year.

Saenuri echoed the vow, adding that the government should allocate at least 100 billion won (US$88.2 million) to support the troubled shipbuilders by ordering new warships, patrol boats and government ships.

The ruling party added the extra budget should not be used in social overhead capital projects or free education programs, stressing it needs to be generated on job creation.

South Korea's unemployment rate for young people, aged between 15 and 29, reached 10.3 percent in June, up from May's 9.7 percent, according to the report compiled by Statistics Korea.

The country's top three shipyards suffered a combined operating loss of 8.5 trillion won last year, due largely to increased costs stemming from a delay in the construction of offshore facilities and a worldwide dearth in demand.

The trend has emerged as one of the major drags on the South Korean economy, with the restructuring process likely to lead to layoffs for large numbers of workers.

colin@yna.co.kr
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