Finance minister vows to boost recovery momentum next year

SEJONG, Dec. 20 (Yonhap) -- Finance Minister Hong Nam-ki said Friday that South Korea will spare no efforts to boost economic recovery next year as it seeks to boost corporate investment and consumer spending.

"There should be an economic rebound next year to put the economy on a growth track," Hong told a KBS radio program earlier in the day.

The nation's economy is expected to grow 2.4 percent next year, following this year's estimated 2 percent expansion, on the back of an anticipated recovery in the memory chip sector and a series of policy measures.

Hit by a lengthy U.S.-China trade war and a cyclical slump in the memory chip sector, Korea's economy is poised to report its weakest annual growth in a decade this year.

Hong said the government will make "innovative efforts" to increase the nation's potential growth rate.

Signs of easing trade tensions between the United States and China and an anticipated upturn in the global memory chip market are expected to help South Korea achieve the growth target next year, Hong said.

As part of the government's initiative to boost the economy through investment, state-run institutions will expand next year's investment to 60 trillion won (US$51.6 billion) from 55 trillion won for this year.

Also, the government will encourage private firms to spend 25 trillion won in large-scale investment projects.

As part of efforts to help their financing, the government will provide financial support worth more than 10 trillion won, including 4.5 trillion won worth of low-rate loans, for companies' facility investment.

Hong said the government will encourage private companies to boost their facility spending next year through various policy measures.

kdh@yna.co.kr
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