South Korea's top economic policymaker on Monday defended the government's budget proposal for next year, saying expansionary fiscal spending is needed to respond to economic headwinds and vitalize the economy.

At the parliamentary budget committee's review of the government's record-high 470-point-five trillion won proposal, Finance Minister Kim Dong-yeon said people's livelihoods are not improving amid worsening jobs and income distribution indicators.

Kim also pointed out that while exports and spending remain relatively stable, private investments have sharply diminished and market volatility has expanded.

The minister said job creation will be the focus of next year's budget, adding it is a key link in the virtuous cycle of increased household income, leading to higher spending, more domestic demand and growth.

He urged rival parties to cooperate to get the budget bill approved by parliament before the constitutional deadline of December second.