Seoul draws up $10bn for jobs
10 June, 2017
South Korea's new government announced last Monday a 11.2 trillion won ($10bn) fiscal stimulus package, extra budget, to increase social welfare subsidies and to create public sector jobs, one of the main pre-election pledges.
The Finance Ministry said about half of the stimulus package will be allocated to add 71,000 jobs in the public sector, including teachers, police, firefighters and social workers. The extra budget will also support the unemployed, women and the elderly. The government also plans to give subsidies to small- and medium-sized firms that create stable full-time jobs, rather than contract jobs, to boost quality jobs in the private sector. In total, the package will create more than 110,000 jobs in the public and private sectors.
President Moon Jae-in promised to put jobs at the centre of his economic policy during his election campaign. Asia's fourth-largest economy may appear to be on track to recovery with recent improvements in exports and economic growth. But those upbeat economic reports mask other problems, such as inequality in income distributions and youth unemployment that hovers near all-time highs.