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Whether such relatively small-scale pump-priming can produce results at a time when the governments of the U.S., Japan, China and Europe are pouring money into stimulating the economy remains to be seen.

The government will lift the designation of speculation zone this weekend on all but three districts in upscale southern Seoul -- Gangnam, Seocho and Songpa. Regulations on the floor area ratio of apartment complexes subject to renovation and on builders' obligatory construction of small and rental homes are also to be lifted.

The measures are part of a comprehensive package to overcome economic trouble focusing on greater spending and deregulation of the property sector. The government said it will increase budget spending by W10 trillion, public spending by W1 trillion, and tax incentives by W3 trillion.

Next year's spending will be up from the originally projected W273.8 trillion to W283.8 trillion to support small- and medium-sized enterprises, create jobs, help low-income people and build infrastructure. Public corporations such as the Korea Highway Corporation will also increase next year's spending by W1 trillion.

To induce businesses to expand their facility investment, the government will give W3 trillion worth of tax incentives to them by extending the deadline for 5-10 percent tax deductions from the end of this year until the end of next year.

(englishnews@chosun.com )