Gov't to unveil economic stimulus package next week

The Korean government will announce its economic stimulus package next week that will include funds created by "unconventional" ways, the country's vice finance minister said Tuesday.

"(The government) has been talking about a stimulus fund of 8.5 trillion won ($7.5 billion) plus alpha and the size of this alpha will be announced next week," Shin Je-yoon, first vice minister of strategy and finance, told reporters.

Shin did not elaborate on the size or source of the additional fund to be included in the stimulus package, except to say that it will be created by "unconventional" or "very creative" ways.

The government has been under calls to set up a supplementary budget to help revitalize the country's economy, but the finance ministry has refused to do so, claiming the current conditions do not warrant such a measure and that the government can manage simply by spending its existing funds more efficiently.

Finance Minister Bahk Jae-wan earlier said measures to spur the country's slumping economy may include an overhaul of the country's tax system to make more funds available.

The government forecast the country's economy to grow around 3 percent this year, but many now believe the growth rate may fall into the 2-percent range, partly due to the country's shrinking exports.

South Korea's exports in the first eight months of the year shrank 1.5 percent from the same period last year, according to the Ministry of Knowledge Economy.

Shin noted the country's economic recovery was being delayed partly due to persistent economic woes stemming from the eurozone debt crisis.

"The government will do its utmost to achieve a 3 percent growth rate," he said. (Yonhap)