Finance Minister Yoo Il-ho and Bank of Korea Governor Lee Ju-yeol held a luncheon meeting Friday to discuss how to work together to overhaul the nation's economic structure. 

They agreed that the South Korean economy was in a dire situation amid slow economic growth in China, the U.S. rate hike, emerging jitters and geopolitical instability surrounding North Korea's nuclear test.

They also agreed that it's high time to overcome a number of structural concerns including changes in the global population and economic structures, as well as weakening domestic demand at home.

The minister and governor agreed that the government and the BOK will be in tune and work together to preemptively manage economic risk factors and carry out economic and fiscal policies in harmony.