The ruling Saenuri Party and the government on Tuesday agreed to seek a more-than-average increase in defense spending for next year, amid mounting military threats from North Korea.

During their first bilateral consultations to discuss next year's budget, the two sides also agreed to set aside more funds to create jobs for young people, tackle issues arising from the country's low birthrate and aging population.

The meeting at the National Assembly was attended by Saenuri floor leader Chung Jin-suk, Finance Minister Yoo Il-ho who doubles as the deputy prime minister for economic affairs, and other senior officials.

The ruling party demanded an increase in defense outlays to support a series of projects to better cope with Pyongyang's evolving nuclear and missile threats, and to enhance the overall living conditions for troops, Rep. Kim Gwang-lim, the party's policy chief, told reporters.

During the consultations, the party's floor leader stressed the importance of swiftly passing the government's extra budget plan worth 11 trillion won ($9.64 billion), saying that a timely economic stimulus is crucial to reinvigorate South Korea's economy facing flagging exports and a possible fallout from the ongoing restructuring of major industries.

"The timing is important for (revitalizing) the economy and the passage of the extra budget plan should not be postponed," Rep.

Chung said during the consultations with the government.

In particular, Chung warned that if the legislature fails to approve the extra budget plan quickly, the country's economic growth this year may fall to the lower end of 2 percent.

Last month, South Korea's central bank revised down its growth outlook to 2.7 percent from 2.8 percent three months earlier, citing sluggish consumption at home and abroad.

On Monday, the three major parties including the main opposition Minjoo Party of Korea and the People's Party agreed to open a parliamentary plenary session on Aug. 22 to handle the extra budget plan. (Yonhap)