S. Korea FinMin sets 2020 budget at 513.5 tn Won; up 8% from 2019

Dhwani Mehta FXStreet

South Korean Finance Ministry drafted the most aggressive budget spending plan since the 2008-2009 global financial crisis for next year amid mounting trade risks from both at home and overseas.

Key Details:

“It would propose to parliament a budget bill of 513.5 trillion won ($423.45 billion) for next year, up 8.0% from this year when including the extra budget for 2019, and up 9.3% excluding it.

Next year’s fiscal deficit would rise to 3.6% of expected annual gross domestic product from a 2.2% gap projected for this year, marking the biggest shortfall since 2009 when the global economy was fighting the financial crisis.

The ministry said in a statement budget spending would be increased sharply for welfare, job creation, small businesses, environment and research-and-development projects.

Details of the budget bill were disclosed just before the central bank’s policy meeting on Friday.”

Despite the announcement of the budget proposal, the South Korean Won bounced-off highs and trades at two-day lows against the US dollar, with USD/KRW up 0.30% near 1,216 levels.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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