5 Trillion Won In Added Funds Approved for Economic Boost

A 5 trillion-won ($3.8 billion) package of supplementary budget measures, intended to shore up the ailing economy, passed through the National Assembly's main session Monday. Legislators also approved the anti-money laundering bill, but minus the authority to trace financial accounts.

The 5.5 trillion won is the full amount proposed by the government, with a view to supporting the regional-based medical insurance scheme and creating job opportunities for youth. Government officials projected that the supplementary budget will raise gross domestic product by 0.3 or 0.4 percent.

Government and opposition legislators bickered a little over the spending measures, but accepted them in the name of the larger good of the economy.

"The supplementary budget is full of precedural problems, but we acceded, taking into consideration the struggling economy and people's concern," Representative Lee Kang-doo of the opposition Grand National Party said.

The anti-money laundering act, three years in the making, was enacted amid criticism that it was toothless.

The legislation sets up a new institution, the Financial Information Unit, to oversee possible laundering activities. The unit will be able to trace financial accounts on overseas transactions but not domestic accounts. It can demand financial information from administrative and financial institutions, as well as collect credit and foreign exchange information at large. But it will not be able to monitor political slush funds, though it may alert the National Election Commission to persons suspected of laundering funds.

by Ko Jung-ae