Gov't aims to revive domestic consumption in H2: minister

By Lee Joon-seung

SEOUL, July 8 (Yonhap) -- The government aims to put its support behind measures that can revive domestic consumption in the second half, which is critical for bolstering the national economy, South Korea's top economic policymaker said Wednesday.

Finance Minister Yoon Jeung-hyun said at a meeting of economic ministers that
while the effect of increased state spending is having an impact, such efforts
are not being supported by the private sector.
Seoul passed a record 28.4 trillion won (US$22.2 billion) supplementary budget in
late April to compensate for the worldwide economic slump that has dented
consumption, exports and business investments. Seoul expects the economy to
contract 1.5 percent on-year this year before making a comeback in 2010.
"Since recovery in the second half depends on the domestic economy regaining
buoyancy, every effort must be made to fuel private sector investment and
spending with ministries implementing steps to facilitate such developments," he
said.
The minister, meanwhile, said that while there is some lingering uncertainties
about possible spikes in international crude prices and raw materials, consumer
prices have stabilized at 2 percent annually in June and may move up into the 1
percent range this month.