[THE INVESTOR] South Korea will inject more than 65 trillion won (US$58.10 billion) next year to revitalize the economy, the Trade Ministry said on Sept. 2.

Out of the 400.7 trillion won budget for 2017, which was endorsed by the Cabinet earlier this week, the government set aside more than 16 percent of the total to revive the economy, boost exports and support small and medium enterprises.

According to the ministry, some 600 billion won, up 42.5 percent from a year earlier, was earmarked for boosting exports, the key driver of Asia‘s fourth-largest economy.

South Korea’s outbound shipments turned around to post a 2.6-percent on-year gain in August, snapping a record 19 consecutive months losing streak that started in January last year.

But experts remained cautious that the upturn will hardly go on through the remaining months of 2016 and in 2017, due to a prolonged slowdown in the world economy and a possible financial turmoil sparked by a U.S. rate hike.

To tackle such headwinds next year, the government will create an export voucher program worth 177.8 billion won designed to give consulting services and other related benefits to troubled local exporters.

(theinvestor@heraldcorp.com)