Finance minister urges policy focus on domestic demand, people's lives

SEOUL (Yonhap) - South Korea should focus on boosting domestic demand and stabilizing the livelihood of ordinary people in its economic polices during the second half, the nation's top economic policymaker said Wednesday.
The remarks by Finance Minister Bahk Jae-wan came before the government is to unveil its second-half economy management plan later this month. The plan will likely set the general direction for the government's economic polices and provide its latest assessment of situations at home and abroad.
"Main focus should be placed on stabilizing the livelihood of ordinary people, enhancing economic fundamentals by strengthening the domestic demand base and nurturing more future growth engines," Bahk told a weekly economic policy coordination meeting.
In particular, he noted that the government should also focus on creating jobs and taming inflation to alleviate the suffering of ordinary people.
South Korea's economy has been rebounding fast from the global downturn over the past few years, driven by the government-led stimulus measures and robust exports.
Policymakers, however, remain concerned that the recovery has yet to reach the daily life of ordinary people as many of them still have to confront frozen employment and high inflation.
Bahk said that the government should expand its support for the underprivileged and other needy people "within the fiscal capacity." He, however, cautioned against "indiscriminative welfare populism," saying that the government also has to keep its fiscal soundness intact.
As for external economic situations, Bahk said that uncertainties still remain so high that the government should continue its drive to improve the overall economic fundamentals and prevent the economy from being swayed by shocks from outside the country.