The government will cut its growth forecast for next year from three percent to the mid-two percent range. It will also slash its estimate for employment growth next year from 300-thousand to 200-thousand.

The government plans to increase infrastructure investment in major public firms such as the Korea Electric Power Corporation and the Korea Land and Housing Corporation. It will also expand support for low-income households and self-employed people going through hard times under the antigraft Kim Young-ran Act.

The Finance Ministry said on Sunday that the government will announce its latest growth estimates and economic policy for 2017 to that effect on December 28.

In its June projections, the government forecasted that the Korean economy will grow three percent next year.

But the lowered growth forecast appeared to have reflected growing internal and external economic risks, such as Britain’s decision to leave the European Union, Donald Trump’s victory in the United States presidential election, the U.S.' latest rate hike and the parliamentary passage of an impeachment motion against President Park Geun-hye.