Korea outlines key fiscal stimulus measures

Slowing growth forces South Korea to roll out another pump priming package.

BBVA said that, "as expected, South Korea today announced additional fiscal stimulus measures to support slowing growth."

"The measures are rather modest (around 0.5% of GDP), consisting of USD 5.2 billion in tax cuts and extra spending measures to support the housing market and car sales. The package will be implemented during the remainder of 2012 and in 2013," it added.

"Meanwhile, we expect further policy support in the form on another 25bp interest rate cut by the Bank of Korea at its next policy meeting on September 13," it said further.

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