[THE INVESTOR] The government will intervene should external risks facing the South Korean economy be realized, Deputy Prime Minister Yoo Il-ho said on July 6.

Speaking at the conference on government finances held in Seoul, Yoo said that the government will intervene if the Korean economy is hit by external factors. 

“If external risks are realized, state finances (will be used) to overcome the crisis as it was in the past,” Yoo said. He added that concerned ministries must work to establish healthy state finances so that the government can intervene when needed.

He said that developments that followed UK’s referendum on leaving the European Union was a reminder that government finances served as a shield for the Korean economy in the past.

Saying that noneconomic elements such as North Korean provocations are affecting domestic and international economies on a more frequent basis, Yoo called on the ministries to cooperate on securing healthy finances for the country.

At the meeting, the attending officials agreed to draw up regulations for improving the country’s finances, and to submit a bill to the National Assembly.

The bill would bring restrictions regarding the national budget and include guidelines regarding GDP-to-national debt ratio.

By Choi He-suk (cheesuk@heraldcorp.com)