The government announced a package of measures Thursday to boost investment amid concerns domestic demand could slip into the doldrums due to slumping exports and the Middle East Respiratory Syndrome outbreak.

The measures, which aim to spur more than 5 trillion won ($4.4 billion) of investments in tourism, venture and construction sectors, come after the government recently cut this year's growth target to 3.1 percent from 3.8 percent in the face of tough domestic and external challenges.

"The goal is to revive economic growth momentum by making it possible for investments to flow into key sectors in a timely manner," said Deputy Finance Minister Jeong Eun-bo in a press briefing.

"The package calls for actions to counteract the negative effect MERS has exerted on domestic consumption and to encourage businesses to push forward projects that can lay the foundation for sustainable growth."

The MERS outbreak has so far claimed 35 lives and sickened 186 people, sparking a severe health scare and making a big dent in consumer spending, one of the nation's key growth engines.

South Korea's overseas shipments tumbled 10.9 percent in May from a year earlier and were down 1.8 percent on-year in June.

The measures call for lifting red tape that has held up large projects worth 1.2 trillion won in such places as Saemangeum and Seosan regions on the country's western coast.

The Saemangeum solar power facility, which has been held up due to its proximity to Gunsan Airport, is the first South Korea-China joint project since the two sides reached a free trade agreement, which is expected to lead to 300 billion won in investment.

The Seosan autonomous vehicle technology research center, some 130 kilometers south of Seoul, is projected to allow some 100 billion won worth of investments to flow into the community.

To breathe new life into the construction sector, the government will ease the ceiling on the current floor space ratio for apartments and office buildings, and give more incentives to building projects.

The government said with some 39 percent of all buildings in the country being over 30-years-old, the construction renewal market can draw in up to 450 trillion won in new investment over the next several decades.

In an effort to support venture startups, the government will open the last of the 17 business innovation support centers by July that can offer "one-stop" services to help entrepreneurs receive information on financing, legal advice, patents and sales.

The government also plans to create a so-called success ladder for startup businesses that can help them recruit qualified workers and receive timely financing.

Under this plan, male workers employed by venture companies with good growth potential will be able to receive military duty exemptions. To help the flow of funds, measures will be taken to give greater tax exemptions to stock option holders and encourage venture capital firms to play a greater part in providing initial funds for startup companies.

The government said that if all goes according to plan, investments into venture startups could reach 2 trillion won annually by 2017.

In order to revive the tourism industry hit hardest by the MERS outbreak, the government will take measures to encourage more foreigners to visit South Korea.

Last year, a record 14.2 million visited the country, but the number has plunged in the wake of the MERS scare.  

The government said it is in the process of employing top local celebrities to star in commercials highlighting many tourist attractions in South Korea.

In addition, the government plans to kick off the "Korea Grand Sale" earlier than in the past to help attract foreign shoppers and allow the development of mountains and hills for tourism facilities, including hotels, restaurants, parks and even golf courses.

In a press conference after announcing the package, Finance Minister Choi Kyung-hwan said that timing and decisiveness are of the utmost importance.

"If an extra budget is implemented in a timely manner, the country will be able to pull off a growth rate in the 3 percent range," he said. Last week, the government submitted the 11.8 trillion won supplementary budget to parliament for approval.

Noting that while slowing investments and weak exports are both hurting the country's growth momentum, Choi said the Greek debt crisis, MERS and a drought are also contributing downside risks for the country.

On exports, Choi said in order to deal with slower than expected global economic recovery and the weak yen which gives Japanese goods more price competitiveness abroad, the government will seek to increase financial support for exporters and encourage innovations that can give these companies an edge in the future.

The finance ministry, which is in charge of the nation's economic policy, meanwhile, said the latest investment promotion programs will be implemented as soon as possible, while seeking parliamentary approval of measures that require changing existing laws. (Yonhap)