South Korea announced a stimulus package of more than KRW15 trillion (USD13 billion) on Thursday, including a supplementary budget, and slashed its economic growth forecast for the year as a deadly outbreak of the MERS virus added to pressure on the already shaky economy.
Finance Minister Choi Kyung-hwan said although there were concerns a supplementary budget could hurt fiscal soundness, the heavy impact of the MERS outbreak demanded immediate measures to combat weak growth.
"I am concerned growth will lag below 1 percent for a fifth straight quarter into the second quarter, and the current situation can develop into more low growth," Finance Minister Choi Kyung-hwan told a press conference in Seoul.
(Source: CNBC)