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The 18^th meeting was held on Wednesday, July 29, where the current economic situation and future prospect were discussed. How to promote investment in southern coast tourism was specially dealt with, and government’s six month job creation project for lower income families was briefly evaluated.

First, the current economic situation and future prospect:

GDP of the second quarter recorded better-than-expected growth of 2.3 percent quarter- on-quarter, along with improved consumer and business sentiments. However, this brilliant performance of the second quarter was in part helped by front-loaded budget spending and temporary tax relief such as tax cut for new car purchase.

In the third quarter, the Korean economy is not expected to perform as well as the second quarter, but year-on-year GDP is projected to increase in the second half, with the 2009 GDP landing at negative 1.5 percent as was forecast.

The economic situation in the second half will be full of uncertainties, which calls for efforts to keep the momentum of the first half.

Second, how to promote investment in southern coast tourism:

To promote investment in the southern coast, new guidelines need to be set up, which will cover environmental protection of the region and development for tourism. Minister Yoon stressed that the development should be made in the mid and long term on the basis of regional characteristics.

Third, the evaluation of government’s six month job creation project:

The number of employed persons in June increased 4,000, a huge improvement

compared with May’s decrease of 219,000. This improvement was affected by supplementary budget spending including government’s six month job creation project.

So far, the government’s job creation project is going well, but it needs to be closely monitored as the project is funded fiscally. The ministries are required to actively pursue job creation of their own and make sure of the social safety net properly working.