Anchor: The government announced it will reduce fuel taxes by 15 percent and create 59-thousand jobs in the public sector. Amid sluggish economic indicators, the government unveiled the set of measures during a meeting of economy-related ministers on Wednesday. 
Our Park Jong-hong has the details.

Report: The government will reduce fuel taxes by 15 percent and create tens of thousands of jobs in the public sector in a bid to ride out the downturn.

Deputy Prime Minister and Finance Minister Kim Dong-yeon revealed a policy package during an economic policy meeting Wednesday.
 
[Sound bite: Finance Minister Kim Dong-yeon (Korean)]
“We will strengthen our support for the working class and small business owners who are suffering from the recent increase in fuel prices and sluggish consumption. For six months from November sixth, we will cut petroleum taxes by 15 percent, which will reduce the fuel price burden for the working class and small business owners by around two trillion won.” 

The six-month reprieve will bring down the price of gasoline by 123 won per liter, or about seven percent. A commuter filling up a small sedan’s tank twice a month can save up to 150-thousand won, or more than 130 dollars. 
 
Diesel prices will also be down by five-point-eight percent.

But it is unclear if the discount will most effectively help the target population. Economists say that a ten-percent petroleum tax cut in 2008 ended up making the top 20 percent income earners save six times more than the bottom 20 percent of citizens.

The government earlier considered a ten-percent tax reduction but decided to apply a larger cut, citing growing oil prices that are burdening small businesses. 

[Sound bite: Finance Minister Kim Dong-yeon (Korean)] 
"External risk factors have been aggravated, including the U.S.-China trade friction and the normalization of monetary policies in major economies, making it unlikely that the economic and employment situations would improve in the short term." 

The government will also create 59-thousand jobs at state and public organizations and provide vocational training for 35-thousand job seekers.

Most of the jobs are aimed at easing youth unemployment, including internships at state-run and public organizations.

The government said, when deemed necessary, the new temp positions may be extended until next year and plans to fully capitalize on the budget that’s available for the remainder of the year.

Under the policy package, private sector-led investment projects will be implemented faster than scheduled, and a total of 15 trillion won worth of financial assistance will be pumped into companies to help them with facility investment.

The measures come at a time when job growth is hitting record lows with monthly employment hovering below 100-thousand for nine consecutive months.
Park Jong-hong, KBS World Radio News.