Updated: 06/29/2012 02:09

South Korea cuts 2012 growth target, boosts spending

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South Korea has cut its economic growth target for this year.

Seoul has also unveiled plans to boost public spending by more than US$7 billion, as it aims to shore up Asia's fourth-largest economy in the face of the euro zone crisis.

The Ministry of Strategy and Finance cut the country's economic growth forecast 3.3 percent, weaker than its earlier projection of 3.7 percent.

It also expects the economy to expand 4.3 percent next year, while predicting inflation would edge up to 3.0 percent.

The finance ministry aims to bring the fiscal balance back to a surplus next year.