S. Korea's fiscal status remains sound: finance minister

SEOUL, Feb. 10 (Yonhap) -- South Korea's fiscal status remains sound despite expanded spending aimed at bolstering the economy, Seoul's finance minister said Wednesday, dismissing growing concerns over debt problems emanating from some European countries.

"From a conservative point of view, our fiscal deficit stood at around 5 percent
of gross domestic product last year," Finance Minister Yoon Jeung-hyun told a
meeting with other policymakers. "Deficit problems for European countries
including Greece, where the deficit reached around 12 percent of GDP last year,
cannot be comparable with our finical status."
He noted, however, that the government recognizes the importance of keeping the
nation's fiscal status in sound shape at a time when debt woes in Europe could
derail the global economic rebound.
His comments come as concerns grow that South Korea might also face a ballooning
deficit and debts due to its expanded fiscal spending over the past year meat to
ease a sharp economic downturn prompted by the financial crisis in late 2008.
The government earlier attempted to assuage jitters by asserting that its fiscal
status remains in relatively good shape and that it will continue efforts to
streamline the overall spending structure in order to achieve a balanced budget
by the 2013-14 target year.
Meanwhile, assessing his first year in office as finance minister, Yoon said that
South Korea has performed better than many other nations in overcoming the global
economic downturn but more urgency should be placed on how to prepare for the
post-crisis era.
"Now is more important. We have done better in overcoming the crisis but
challenges lie ahead for us to prepare for the future by securing new growth
engines," he noted.
kokobj@yna.co.kr
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