South Korea on Thursday announced a $40000000000 stimulus plan, to boost the economy. The downturn in consumer spending and weak globaleconomic recovery is still that the South Korean economy pressure.

The South Korean government also said, mortgages will be relaxed, for those who will cash reserves for wages and dividends enterprises to providetax incentives, the aim is to stimulate economic activity.

Announced stimulus plans, the finance ministry said South Korea, now expects the economy will grow by 3.7% this year, less than forecast last December 4.1%. South Korea's economy grew by 3% last year. The Treasury is expected in 2015 the economy will grow by 4%.

The South Korean Ministry of finance the expected reduction in economic growth weak domestic demand due to the ferry sank in April and the global economic slowdown led to South Korea export demand.