Bank of Korea Governor Lee Ju-yeol has emphasized that South Korea has sufficient fiscal resources to deal with sluggish economic conditions.  

In a lecture on Wednesday hosted by a lawmakers’ economic and fiscal forum at the National Assembly, Lee said the country is capable of responding to the slump in the economy and employment thanks to robust fiscal conditions.

To back up his claim, Lee cited recent International Monetary Fund(IMF) data, which presumed South Korea’s room for fiscal maneuver, or its maximum sustainable national debt minus its current national debt, at 241-point-one percent as of 2014.

It was the second highest figure among eleven major countries compared in the data, trailing only Norway’s 246 percent.

Regarding the direction of monetary policy, Lee said the central bank will focus on the recovery of the domestic economy and will employ eased monetary policy, while taking note of financial stability.

He said the current low-growth and low-inflation trend in South Korea stems from structural reasons, such as a decline in potential growth rate and ageing population, emphasizing that structural reform should be carried out in addition to monetary and fiscal policies.