Finance minister vows to boost economic recovery momentum via expansionary fiscal spending

SEOUL, Aug. 27 (Yonhap) -- South Korea's chief economic policymaker said Monday that the government will focus on boosting economic recovery momentum by no later than early next year, through a variety of measures, including expansionary fiscal spending. Speaking at a parliamentary committee meeting, Finance Minister Kim Dong-yeon said, however, it will take time to address the dismal job market and widening income inequality, given changes in the overall economy and economic structure, as well as consumption patterns. "The government will strive to get the economy to gain traction by no later than the first half of next year," Kim said. "We are determined to boost the economy through expansionary fiscal measures in addition to macroeconomic steps." His remarks came as the government is set to propose the 2019 budget spending plan this week, which centers around a drastic hike in fiscal spending aimed at creating jobs. Government data showed that the number of jobs increased by only 5,000 from a year earlier in July, compared with 106,000 new jobs added to the local market in the previous month. It marked the slowest job growth since January 2010. The poorer-than-expected job data is a hard blow to President Moon Jae-in, whose top economic agenda is to create more quality jobs. Critics say a hike in the country's legal minimum wage, which was raised by 16.4 percent this year to 7,530 won (US$6.7), is one of the key reasons for the discouraging figures. Owners of small shops have claimed that the steepest increase in nearly two decades is driving them out of business, and some opponents say that it is one of the major reasons for the recent lackluster job creation. sam@yna.co.kr (END)