Korea's finance minister: domestic economy needs expansionary fiscal, monetary policy until at least next yearUpdated: 2014-07-29 06:31:51 KST
Korea's new finance minister Choi Kyung-hwan is strongly pushing ahead with its goal to boost the nation's flagging economy.
During a television debate with journalists on Monday, Choi said the government will seek aggressive economic policies for as long as they're needed.
"Whether it's fiscal or monetary, we need an expansionary policy for the time being. I'm not just talking about the second half of this year. The policies should continue at least until through next year and could continue on beyond that, if necessary."
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Choi added that the government and the nation's central bank share the same view over the current economic situation.
He said that both parties have agreed on running an expansionary policy, further raising expectations of a rate cut next month.
"The Korean economy is suffering from poor conditions so the Bank of Korea will countermeasure such risks with its monetary policy."
Choi said, however,. that he's skeptical about lowering the key rate too much, like in the United States or Japan where interest rates remain near zero, as their economic situations are different.
The finance minister also described the current real estate market as being in a cold period and reiterated the importance of normalizing the housing market.
Hwang Ji-hye, Arirang News.
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