President Park Geun-hye told officials on Thursday to mobilize all policy tools available to try to encourage South Korean business leaders to boost investment.
She said policy tools include an 11.8 trillion won ($10.49 billion) extra budget bill, which is part of a 22 trillion won stimulus package designed to revive the faltering economy.
The National Assembly has yet to approve the bill.
She said increased investment and restoration of consumer confidence is the key to getting out of the tough economic situation amid uncertainties over Greece’s possible exit from the eurozone, or the “Grexit.”
“The government should monitor whether its budget is carried out without a hitch to ensure it does not lose the golden time to stimulate the economy,” Park said in a meeting with officials on how to promote trade and investment.
Her comments came as business leaders vowed to keep pushing for their planned investment and taking the lead in rejuvenating the economy.
“We will stick to our investment plans without being swayed by variables from home and abroad, while focusing on nurturing new business,” presidents of the country’s top 30 business groups said a joint statement during their emergency meeting.
Asia’s fourth-largest economy has been suffering due to a decline in outbound shipments and sagging domestic demand even though the country’s central bank has slashed its key rate by a total of 1 percentage point in less than a year to a record low of 1.5 percent.
South Korea’s exports represent around 50 percent of its gross domestic product. (Yonhap)
