S. Korea expected to announce measures to boost domestic demand

SEOUL, June 5 (Yonhap) -- South Korea may reveal a set of measures soon to help boost domestic demand as the widening gap between the economy's domestic and external performances does not show signs of narrowing.
Late last month, South Korean President Lee Myung-bak instructed his ministers to map out measures to stimulate domestic demand, thus creating more jobs and helping low-income earners.
"The plans may be revealed late this month at the earliest," said an official at the presidential office of Cheong Wa Dae.
The measures would come as Lee's popularity has dwindled in the face of sluggish domestic demand.
Data regarding industrial activity for April showed a steepening slump in domestic demand as retail sales shrank. Also, a survey index measuring South Korean manufacturing companies' assessment of business conditions in June fell to its lowest level in seven months, the central bank said earlier.
On the other hand, the economy's exports are still on a steady rising path.
The weak data may force the Bank of Korea to hold interest rates steady at 3 percent for a third consecutive month at its meeting slated for Thursday, analysts said.