South Korea Cuts Outlook, Plans Stimulus Package

South Korea's government lowered growth outlook for Asia's fourth-largest economy and planned a supplementary budget for a second year in a row as the global economy faces heightened uncertainty.

The Finance Ministry said Tuesday that the economy will likely expand 2.8 percent this year, down from its December prediction of 3.1 percent. That would mark a slight improvement from last year but slower growth than 2014.

Jobs would be a primary goal as the government plans a 10 trillion won ($8.5 billion) supplementary budget during the second half of this year. The additional budget, pending parliamentary approval, would be used to support big projects that create jobs. In addition to the extra budget, the government would prepare a stimulus package that would total more than 20 trillion won, it said.

Regarding lowering its growth forecast, the government cited a deterioration in global conditions for exports, South Korea's key growth engine. The International Monetary Fund cut in April its outlook for the world economy and trade.

South Korea's government estimated that the direct impact from the result of Britain's vote to leave the European Union is expected to be limited. But there are concerns about negative repercussions from the increased uncertainty in the global economy and financial markets, it said.

“We will beef up our efforts to improve domestic spending in response to Brexit and other worsening conditions overseas,” Finance Minister Yoo Il-ho told a briefing.