South Korean government on Tuesday approved a 28.9-trillion won (US$20.7 billion) extra budget in a bid to boost domestic demand and revive the slumping economy.

"The global economic downturn is taking place at a faster pace than has been expected in terms of its depth and breadth," said South Korean Finance Minister Yoon Jeung-hyun.

"Reflecting changed economic conditions at home and abroad, the government decided to draw up this extra budget to overcome the current crisis as quickly as possible," he added.

The extra budget is equal to 3 percent of the nation's gross domestic product (GDP). It will be submitted to the National Assembly for approval next month, said the Finance Ministry.

According to Yoon, the extra budget will be primarily aimed at lifting the nation's economic growth rate by 1.5 to 2 percentage points, creating about 550,000 new jobs and offering tax reductions of about 11 trillion won (US$7.84 billion).

Yoon predicted the extra budget will help the nation increase its current account surplus to US$13 billion this year.

The extra budget will also be spent on supporting small- and medium-sized exporters and self-employed individuals, beefing up social safety nets and investment in future-oriented business projects, the spokesman said.

The extra budget, if ratified in the National Assembly, would represent about 10 percent of the government's 2009 budget.

(Xinhua News Agency March 24, 2009)