S Korea launches 11.2t won fiscal package to boost jobs, welfare

Sejong

SOUTH Korea's new government announced a 11.2 trillion won (S$13.8 billion) fiscal stimulus package on Monday, increasing social welfare subsidies and taking steps to deliver on President Moon Jae-in's election promise to create 810,000 public sector jobs.

But Mr Moon's ruling Democratic Party faces a challenge passing the extra budget bill as it only holds 40 per cent of the 299 seats in the National Assembly and would need the support of more than 30 opposition lawmakers.

Both parties in the conservative opposition - the Bareun Party and the Liberty Korea Party - have said the increased welfare spending could become unsustainable and that the plan does not meet legal requirements.

The stimulus package allocates 5.4 trillion won to create public sector and social services jobs, including places for fire-fighters, teachers and postal workers, the finance ministry said. Another 2.3 trillion won will be used to provide subsidies for maternity leave and for elderly people needing medical …