S. Korea FinMin sets 2020 budget at 513.5 tn Won; up 8% from 2019

South Korean Finance Ministry drafted the most aggressive budget spending plan since the 2008-2009 global financial crisis for next year amid mounting trade risks from both at home and overseas.

Key Details:

“It would propose to parliament a budget bill of 513.5 trillion won ($423.45 billion) for next year, up 8.0% from this year when including the extra budget for 2019, and up 9.3% excluding it.

Next year’s fiscal deficit would rise to 3.6% of expected annual gross domestic product from a 2.2% gap projected for this year, marking the biggest shortfall since 2009 when the global economy was fighting the financial crisis.

The ministry said in a statement budget spending would be increased sharply for welfare, job creation, small businesses, environment and research-and-development projects.

Details of the budget bill were disclosed just before the central bank’s policy meeting on Friday.”

Despite the announcement of the budget proposal, the South Korean Won bounced-off highs and trades at two-day lows against the US dollar, with USD/KRW up 0.30% near 1,216 levels.