At the same time, the Bank of Korea said domestic demand showed few signs of recovery in the second quarter to June while exports were expected to lose steam from September.

"We have agreed with the Ministry of Planning and Budget and the ruling Uri Party to seek 4.5 trillion won (4.9 billion dollars) in an additional budget," Finance and Economy Minister Lee Hun-Jai at a press conference.

Of the 4.5 trillion won, 1.7 trillion won will be spent on helping the poor and underprivileged, 1.3 trillion won will support small- and mid-sized firms and 1.4 trillion won will encourage energy conservation.

Lee admitted that domestic consumption and investment were "in the doldrums" and that unemployment remains high despite strong exports.