Deputy Prime Minister and Finance Minister Yoo Il-ho said the government will come up with aggressive fiscal measures to revitalize the economy in the second half of the year.
 
At a meeting with heads of think tanks on Friday, Yoo said the government will respond to weak exports, a slowdown in domestic consumption as well as economic and employment risks stemming from a contraction in the global economy and corporate restructuring.
 
Yoo added that uncertainties are growing in the international financial market due to concerns about a U.S. interest rate hike, financial instability in China and a possible British exit from the European Union as a recovery in the global economy is being delayed. He said when corporate restructuring begins in earnest, employment in the manufacturing sector may slow down amid an increase in downside risks in the economy.
 
Regarding the current economic situation, Yoo said although conditions were extremely weak at the beginning of the year, they have been gradually improving since March. He said the early execution of government spending, extending a cut in the individual consumption tax and designating a temporary holiday in May have led to a pickup in domestic consumption while exports are also slowly recovering.