Gov`t to release 58 trillion won by March

The government will spend a total of 10.8 trillion won from this year until 2006 to establish new urban housing stretching over a combined area of 10.41 million pyong (one pyong equals 3.3 sq. meters) near six local cities including Pusan, Taejon and Mokpo. In the long term, the urban areas will be expanded to 22.26 million pyong, officials said.

In addition, the government will lower the lending rate of three major policy funds by about 0.75 percentage points from the present 7.0~7.5 percent a year to boost corporate facilities investments. The three funds are the industrial infrastructure fund, worth 407.9 billion won, the 750 billion won of corporate restructuring fund and the 219.0 billion won of informationization fund.

Finance and Economy Minister Jin Nyum chaired an economy-related ministers` meeting Thursday, at which plans were adopted to allocate budget funds ahead of schedule in hopes of restoring consumer and investor sentiment and revitalizing local economies.

At the meeting, the government decided to spend 58.1 trillion or 36 percent of the nation`s total budget for 2001 in the first quarter of the year and 101 trillion won or 63 percent in the first six months in order to head off a steep economic downturn.

The officials adopted specific plans to create six new urban areas near Pusan, Taegu, Taejon, Chonan, Mokpo and Chongju.

The government also plans to purchase 26 trillion won worth of goods produced by small- and medium-sized enterprises during the first half of this year through public agencies. It also will take measures to give jobs to 181,000 people a day on average from January through March, an increase of 41,000 from its original plan.

Kwon Soon-Hwal shkwon@donga.com