Anchor: The South Korean government has dramatically cut its outlook on the job market. It also downgraded this year's growth forecast from three percent to two-point-nine percent, boding ill for the government's current income-led growth and job-first campaign.
Our Park Jong-hong has this report.  

Report: The dip below three percent comes only a year after the Korean economy managed to surpass the growth threshold by a tenth of a percentage point.

[Sound bite: Finance Minister Kim Dong-yeon (Korean)]
"We initially forecast a three percent growth for this year, following last year's three-point-one percent expansion, but we are now lowering (the growth forecast) to two-point-nine percent."

During a media briefing on the country’s economic outlook, Finance Minister Kim Dong-yeon said that exports and consumption will both slow down in the second half of the year.

[Sound bite: Finance Minister Kim Dong-yeon (Korean)] 
"It is expected that the growth may slow down and difficulties with jobs and income distribution will not be resolved in a short period. Anxiety over international trade and financial markets has increased with factors such as the trade conflict between the U.S. and China and global monetary policy normalization. If the market and businesses do not revive, the economic situation could become more difficult."

The ministry also reduced its job creation projection to 180-thousand, down from its previous forecast of 300-thousand. Last year, 320-thousand jobs were created in the country. 

Inflation, meanwhile, is predicted to go up to one-point-six percent, and the government believes the poor growth and job conditions would persist unless the internal and external problems are fundamentally dealt with. 

As for 2019, the growth outlook is even grimmer at two-point-eight percent, but some 230-thousand new jobs are expected to be created, representing a more optimistic projection than this year. 

The finance minster said that the government will increase its fiscal spending by more than seven percent next year to keep the economy afloat.

In order to jumpstart the economy, the government also decided to expand the amount of tax refunds for lower income families from next year and reduce special consumption taxes on cars until the end of this year. 
Park Jong-hong, KBS World Radio News.