South Korea will continue with its current expansionary macroeconomic policy until the economy is ready to make a full recovery, the nation's finance minister said Monday.
"We will maintain our expansionary macroeconomic policy until the economy becomes capable of making a recovery on its own," South Korean Finance Minister Yoon Jeung-hyun told a forum in Seoul.
As for the foreign exchange rate, the minister said the government, though firmly standing on respecting economic fundamentals and supply and demand, is closely monitoring the foreign exchange market for any steep one-sided moves.
The South Korean government has focused on boosting domestic demand by taking various stimulus measures, such as tax cuts and extra budgets.
With the government's policies, various economic measures, such as financial market and trade balance conditions, are raising optimism even among policymakers and investors.
The minister still remained cautious on predicting the recovery of the economy, saying "positive and negative signs coexist."
On the other hand, Minister Yoon highlighted the importance of corporate restructuring as the government should prepare for the post-crisis era.