S. Korea to keep expansionary economic policy: finance minister

By Koh Byung-joon
SEOUL, June 15 (Yonhap) -- South Korea will maintain its expansionary
macroeconomic policy until the economy strengthens enough to recover on its own,
the nation's top financial policymaker said Monday.

The government will also watch for any steep one-sided moves of the local
currency though it believes such shifts reflect economic fundamentals and supply
and demand, Finance Minister Yoon Jeung-hyun told a forum in Seoul.
"We will keep our expansionary macroeconomic policy until the economy's capacity
to recover on its own strengthens," the minister said. "As for the won-dollar
exchange rate, we respect economic fundamentals and supply and demand but keep
tabs on any steep one-sided moves."
South Korea's government has been pushing to stimulate domestic demand with
diverse stimulus measures including tax cuts and expanded fiscal spending as
exports, one of the nation's key growth engines, show few signs of perking up
amid a protracted global slowdown.
Financial markets are gaining some stability after suffering sharp fluctuations
last year thanks to expanded foreign purchases and eased economic woes.
Some indicators show that economic conditions are stabilizing, raising optimism
even among policymakers that the worst might be over or nearing an end.
The minister remained cautious, however, stressing that it is premature to
predict an imminent recovery. "As positives and negatives currently coexist, we
need to closely monitor various indicators."
He emphasized the importance of corporate restructuring, saying that now is the
time "not just to deal with current challenges but also cope with the post-crisis
era."
kokobj@yna.co.kr
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