The Republic of Korea (RoK) plans to add 12 trillion won (roughly 9.8 billion USD) more from its budget to the national economy during the third quarter of 2009 in an effort to achieve an earlier economic recovery, said a senior finance official.

According to Deputy Strategy and Finance Minister Lee Yong-gul, the RoK government will tap its budget originally planned for the fourth quarter for the July-September period.

The move is part of the government's efforts to boost the economy as it shows signs of a recovery thanks to fiscal spending and other stimulus measures.

Latest statistics by the RoK National Statistics Office showed that the national economy is starting to bounce back, with a rise of 0.7 percentage point in industrial production in the first seven months of this year from the same period last year.

In a keynote speech addressed to European businesspeople in Seoul the same day, Strategy and Finance Minster Yoon Jeung-hyun confirmed that the RoK government will continue its efforts to create a “foreign business-friendly” environment by providing more incentives for foreigners.

“We will provide full exemptions for rent on land in foreign investment zones exclusively for parts and materials production,” Yoon was quoted by Yonhap news agency as saying.

He added that the government would enhance the flexibility of the labor market and remove “inconveniences” faced by investors in the country.

Foreign investment influx into the RoK rose by 32 percent in the first seven months of the year compared to the same period in 2008, according to the RoK Strategy and Finance Ministry./.