Asian Economy: Overview, Growth and Development - South Korea announces $51bn infrastructure spend ahead of elections.


Byline: S. Kamal Hayder Kazmi

South Korea plans to pour billions of dollars into developing public infrastructure in a stark U-turn for President Moon Jae-in's administration, which is struggling to boost growth despite low interest rates and a record fiscal stimulus. Seoul will increase spending at state-run institutions by 12 percent to Won60tn ($51.2bn) this year, with the bulk of the money set aside for infrastructure building and housing construction, the finance ministry said on Wednesday. Mr Moon, a popular leftwing leader, had ruled out using the property market to "artificially" boost the economy ahead of his election in 2017. However, he is now under growing pressure to revitalise the economy ahead of new polls in April.

Asia's fourth-largest economy...

To continue reading