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South Korea is planning on a multi-trillion-won extra budget to boost domestic demand, as President Moon Jae-in called for swift and decisive policy action to revitalize the economy.
The economy is facing an uphill battle as it faces additional negative momentum in the second quarter.
The National Assembly is scheduled to conduct a plenary session Wednesday to tackle the proposed extra budget.
Moon warned that the damage to the economy caused by the pandemic would worsen if measures are delayed.
To immediately boost spending, Moon said that purchase coupon programs should be carried out, and early payment and early purchase programs should be considered.
The government had decided to expand beneficiaries' direct financial support of up to 1 million won to everyone, after excepting the top 30 percent of families by income.
An additional third budget package that the government is currently devising will include a comprehensive plan to promote domestic consumption.
South Korea's economy suffered a 1.4 percent on-quarter contraction in the first quarter, its sharpest since the fourth quarter of 2008.
Moon also ordered officials to prepare for a "post-corona age" economy in areas of investment and job creation.
He made specifically mentioned employment in industries related to information technology.
