Gov`t to spend W49 tril. in 2nd quarter

The government has decided to supply 49.1 trillion won into the economy during the second quarter of the year, up 43.1 percent from the same period of a year ago, as part of its economy-boosting measure.

Han Sung-Taik, director general at the economy policy bureau of the Ministry of Finance and Economy, said at the monthly economic trend briefing that the government released only 39.9 billion won during the first quarter due to sluggish construction investment. He noted that the government will release more funds during the second quarter.

The money that the government plans to release in the second quarter is equivalent to 30.6 percent of this year`s entire national budget. And the amount is 9.2 trillion won greater than that of the first quarter. It is expected that the government will spend 55.5 percent of the annual budget during the first half, 20.6 percent more than during last year`s first half.

As for the economic trend, the ministry said that sluggishness is spreading from Japan and the United States to the European Union and Southeast Asia. It also noted that the uncertainty of the Korean economy has increased substantially, adding that there are worrisome symptoms in Korea`s export activities. Still, the pace of economic recession has been somewhat slowed, and the gap between the actual economy and index-wise economy has narrowed compared with last year.

Jin Nyum, deputy prime minister and minister of finance and economy, told reporters at a recent press meeting that the government wouldn`t take any measures to boost the nation`s economy and the stock market at a time when economic uncertainties in Japan and the United States are growing. ``We`ll closely monitor the internal and external circumstances,`` he said. ``Then, we will decide in June whether to adjust the macroeconomic goals or take any economy-boosting measure.``

Kwon Soon-Hwal shkwon@donga.com