Finance minister pledges to beef up risk management

South Korea will intensify its risk management during the second half of this year in the face of uncertainties lingering in overseas markets, the country’s top economic policymaker said Tuesday.

The government will also place its policy focus on revitalizing the economy, which has a direct bearing on the livelihood of ordinary people and push for its signature three-year economic innovation plan, Finance Minister Hyun Oh-seok told a meeting with heads of research agencies in the economic and humanities community.

The meeting was held to explain the government’s second-half economy management plan, which is to be unveiled later this month.

“The global economy is on a modest recovery track but downside risks are still lingering,” Hyun said. “In particular, the U.S. tapering could end up deepening vulnerability to emerging economies and increasing volatility in the global financial markets.”

He also voiced concerns over weak consumption, which was hard-hit by April’s deadly ferry accident. The disaster left some 300 people dead or missing.

“In the aftermath of the Sewol ferry accident, economic sentiment has weakened, with the service sector among the areas being negatively affected and the overall recovery trends being hampered,” Hyun said.

“Sluggish consumption trends are showing signs of letting up recently, but uncertainties still exist,” he added.

Participants shared the concerns that the private-sector consumption remains weak, urging the government to keep up its efforts to inject vitality into the economy.

They also recommended that the government push for regulatory reforms and an overhaul of the public sector often criticized for its lax management and chronic debt problems, saying that structural problems might be linked to the protracted slump in spending and investment. (Yonhap)