South Korea's economy is showing signs of recovery but still faces many structural problems such as inefficient resource distribution and restrictions that hamper entrepreneurship, the finance minister said Monday.
"Our economy is showing signs of recovery, but there are still many structural challenges that need to be resolved," Finance Minister Hyun Oh-seok said at a meeting with experts of the state-run Korea Development Institute think tank here.
"Economic activity based on abnormality is still rampant, causing an inefficient distribution of resources," he said. "Also, growth ladders are not working well, putting a drag on entrepreneurship, hurting workers' passion, and affecting investment and economic vitality."
He said that the global economy is in the thick of the turbulence caused by the U.S. Fed's rollback of its stimulus program, which requires the government to put more efforts in strengthening its overall economic health and fundamentals.
"It is time to review and reorganize the overall framework of our economy," he said.
The meeting between Hyun and KDI officials was held to discuss the government's "three-year economic innovation plan," which was first initiated by President Park Geun-hye earlier this year.
Under the plan, the president aims to raise the country's growth potential to 4 percent, hike the overall employment rate to 70 percent and increase the annual per-capita income level to $40,000.
Hyun said he expects the three-year economic plan, expected to be unveiled by the end of this month, to provide "hope" for the people by presenting "tangible" long-term visions for the economy. (Yonhap)