South Korea will put the top priority of its macroeconomic policy on taming inflation and boosting jobs as part of efforts to stabilize the livelihoods of ordinary working-class people, the Finance Ministry said Thursday.

The ministry also said it will carry out its macroeconomic policy in a “flexible” manner to better respond to changing global economic conditions.

“We will place our top priority on taming inflation and creating more jobs,” the ministry said in a report. “In response to the global fiscal crisis and other changing conditions at home and abroad, we will manage our macroeconomic policy in a flexible manner and keep working hard to improve overall economic health.”

The broad policy direction comes as Finance Minister Bahk Jae-wan marked his 100th day in office as the nation’s top economic policymaker.

In his inauguration speech on June 2, Bahk said that his priorities are to stabilize prices and generate jobs.

He also emphasized the importance of strengthening the nation’s economic fundamentals to better cushion against any future turbulence, and nurturing new growth engines to achieve sustained economic growth.

The report gave high marks to Bahk for his efforts to run the overall macroeconomic policy, enhance market trust in the government and minimize the impact of external financial turmoil on domestic markets.

Bahk, however, still faces growing uncertainty at home and abroad amid the lingering debt crisis in Europe and concerns over economic slowdown in the United States.

Inflation remains a headache for policymakers here as consumer prices jumped 5.3 percent in August from a year earlier, the fastest growth in three years.

Economic indicators also paint a mixed picture with the latest trade and industrial output figures showing signs of slowing down.

“Despite policy efforts, economic conditions for ordinary people have not sufficiently improved,” the ministry said in the report. “An economic slowdown in advanced countries and other global uncertainties are also posing expanded downside risks for our economy.”

Against this backdrop, the report noted that the ministry will continue its efforts to improve the economy’s job-creation capacity and help low-income people get back on their feet through jobs and welfare polices. (Yonhap News)

The ministry also vowed to keep focusing on achieving sustainable growth and strengthening the nation’s future growth engines, while at the same time bracing for mid- and long-term risk factors in a “preemptive” manner. 

(Yonhap News)