S. Korea continuing efforts to stabilize economy: finance minister

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SEOUL, Nov. 12 (Yonhap) -- South Korea will keep working to stem the current
global financial turmoil from taking its toll on the real sector of the local
economy, a top economic policymaker said Wednesday.
"The fallout from the unprecedented financial crisis is now spilling over to the
real economy. To stem the transition, we need to make substantial efforts,"
Finance Minister Kang Man-soo told reporters before a crisis management meeting.
Kang forecast that the current turbulence will last longer than expected, saying
the extent of its impact on the real economy remains uncertain.
"We will continue to work together with the central bank and the Financial
Services Commission to stabilize financial markets," he added.
South Korea's government has been striving to cushion the impact from the
U.S.-sparked crisis with a raft of stabilization measures including US$100
billion worth of state guarantees for banks' external debts.
Last week, the Finance Ministry also unveiled a stimulus package valued at 14
trillion won ($10.2 billion) to kick-start the slumping economy with expanded
fiscal spending and tax incentives.
The local economy, however, is showing many signs of a marked slowdown, with
gross domestic product expanding at its slowest pace in four years during the
third quarter.
Employment numbers are in the doldrums as companies remained reluctant to hire
workers on the bleak economic outlook. The economy generated 112,000 new jobs in
September, the lowest in 43 months, according to government data.
"We will work hard to prevent the economy from falling into a recession and to
that end, job creation is one of the most important tasks," Kang said.
kokobj@yna.co.kr
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