SEOUL, South Korea (AP) – South Korea’s government unveiled stimulus plans Thursday after the shock of a deadly ferry sinking slowed economic growth to the lowest level in three quarters.
The finance ministry said government spending would increase by 11.7 trillion won ($11.4 billion). Another 29 trillion won would be available to small- and medium-sized companies through loans and other financial support.
To stimulate the real estate market, the government will ease mortgage rules that limit household loans for home buyers.
In announcing the stimulus, the ministry lowered its forecast for South Korea’s economic growth this year to 3.7 percent from 3.9 percent.
A slump in domestic spending crippled growth during the first half while there are uncertainties in the global economy that could slow exports during the second half, it said in a statement.