South Korea's government will introduce a supplementary budget to try to stop the economy sliding deep into recession, the finance minister-designate said Friday.
Yoon Jeung-Hyun was speaking at a parliamentary confirmation hearing, a day after a state-run think-tank concluded that Asia's fourth largest economy is already in a recessionary phase.
When one lawmaker suggested the government draw up a supplementary budget quickly, Yoon replied: "I fully share your view. Please help actively as (the government) will present it after a close review of its scale and timing."
He gave no details.
Parliament in December approved a 284.5 trillion won (205.5 billion dollar) budget for 2009 -- up more than 10 percent from 2008 -- and Seoul has previously announced extra spending and tax cuts worth billions of dollars.
This year it plans to issue state bonds worth a record 74 trillion won, raising concern about growing fiscal deficits.
But Yoon said South Korea can bear fiscal deficits for at least two years.
"The government has no other option but to adopt an expansionary fiscal policy," he said, warning it might be difficult to attain positive growth for 2009.
The economy shrank 5.6 percent quarter-on-quarter in the last three months of 2008, the largest contraction since the Asian financial crisis a decade ago.
Industrial production figures for December showed a year-on-year fall of 18.6 percent, the largest ever recorded.
And exports in January dropped by a third year-on-year, the steepest decline since Seoul started announcing monthly tallies in 1980.
Answering another question from a lawmaker, Yoon said it is "plausible" the government will see a reduction in tax revenue of up to 10 trillion won this year because of the downturn.
The finance ministry acknowledged Thursday the economy faces a growing risk of recession as domestic demand and exports take a steep downturn.
The state-run think tank Korea Development Institute said the same day it appears already to be "in a recessionary phase."
The International Monetary Fund, meanwhile, predicted South Korea's economy will shrink four percent in 2009 before rebounding in 2010.
Yoon, nominated to replace the widely criticised Kang Man-Soo, said he is confident the country can overcome economic difficulties, citing its "past experience in overcoming crises and the people's potential."
He pledged to increase the social safety net and said he plans to expand tax benefits and other support for companies that create jobs.
Yoon Jeung-Hyun was speaking at a parliamentary confirmation hearing, a day after a state-run think-tank concluded that Asia's fourth largest economy is already in a recessionary phase.
When one lawmaker suggested the government draw up a supplementary budget quickly, Yoon replied: "I fully share your view. Please help actively as (the government) will present it after a close review of its scale and timing."
He gave no details.
Parliament in December approved a 284.5 trillion won (205.5 billion dollar) budget for 2009 -- up more than 10 percent from 2008 -- and Seoul has previously announced extra spending and tax cuts worth billions of dollars.
This year it plans to issue state bonds worth a record 74 trillion won, raising concern about growing fiscal deficits.
But Yoon said South Korea can bear fiscal deficits for at least two years.
"The government has no other option but to adopt an expansionary fiscal policy," he said, warning it might be difficult to attain positive growth for 2009.
The economy shrank 5.6 percent quarter-on-quarter in the last three months of 2008, the largest contraction since the Asian financial crisis a decade ago.
Industrial production figures for December showed a year-on-year fall of 18.6 percent, the largest ever recorded.
And exports in January dropped by a third year-on-year, the steepest decline since Seoul started announcing monthly tallies in 1980.
Answering another question from a lawmaker, Yoon said it is "plausible" the government will see a reduction in tax revenue of up to 10 trillion won this year because of the downturn.
The finance ministry acknowledged Thursday the economy faces a growing risk of recession as domestic demand and exports take a steep downturn.
The state-run think tank Korea Development Institute said the same day it appears already to be "in a recessionary phase."
The International Monetary Fund, meanwhile, predicted South Korea's economy will shrink four percent in 2009 before rebounding in 2010.
Yoon, nominated to replace the widely criticised Kang Man-Soo, said he is confident the country can overcome economic difficulties, citing its "past experience in overcoming crises and the people's potential."
He pledged to increase the social safety net and said he plans to expand tax benefits and other support for companies that create jobs.
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