South Korea will help small business owners and improve welfare for low-income earners to boost domestic demand, said Vice Finance Minister Yim Jong -yong.

Ordinary people have real sentiment over the economy lags economic indices, Yim told reporters in Gwacheon. To narrow the gap, the government will prepare policies to support small- to medium-sized businesses and the service and tourism industries, said Yim, who spoke after a two-day meeting between government officials and President Lee Myung-bak.

The government will implement the steps discussed during the meeting after coordination among departments on its second- half economic policy plans to be announced later this month, Yim said.

The discussions between President Lee and his Cabinet didn’t include allowing the won to appreciate to tame inflation, said Yim. The foreign exchange rate will move on demand and supply while the government can implement a smoothing operation to reduce shocks from market volatility. 

(Bloomberg)