S Korea unveils $11bn stimulus plan

Tax cuts and more government spending aimed at cushioning economy from global recession.

    The country's export growth has slowed to its lowest level in 13 months [EPA]

    "If the current situation continues, the economy is expected to grow by around three per cent next year. If the global economy shrinks further, it may be difficult to achieve three per cent growth," he told reporters.

    Kang said he also expected the country's current account to swing to a surplus of about $5bn in 2009 after posting its first annual deficit in 11 years of about $10bn this year.

    The ministry also said it would sharply raise the size of bond sales to fund intervention in the foreign exchange market and offer a state guarantee on foreign-currency deposits at local financial institutions.

    South Korean Share prices fluctuated in volatile trading on Monday, rising by much as four per cent then briefly turning negative ahead of the government announcement, before rising again on the release of the stimulus measures.

    Seoul's benchmark Kospi index lost 23 per cent in October.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    'Money can't buy us': Mapping Canada's oil pipeline battle

    'Money can't buy us': Mapping Canada's oil pipeline battle

    We travel more than 2,000km and visit communities along the route of the oil pipeline that cuts across Indigenous land.

    Women under ISIL: The wives

    Women under ISIL: The wives

    Women married to ISIL fighters share accounts of being made to watch executions and strap explosives to other women.

    Diplomats for sale: How an ambassadorship was bought and lost

    Diplomats for sale: How an ambassadorship was bought and lost

    The story of Ali Reza Monfared, the Iranian who tried to buy diplomatic immunity after embezzling millions of dollars.