The International Monetary Fund(IMF) has recommended additional stimulus measures for South Korea, saying that the country has the fiscal room to do so. 

According to Seoul's Finance Ministry, the IMF made the recommendation on Thursday while unveiling the outcome of its annual meetings with South Korean officials over the country's economic situation. 

The IMF said in a statement that given "sizable economic slack" and downside risks to the recovery, some "additional fiscal and monetary policy accommodation" would help the economy normalize faster and bring discouraged workers back to the labor market.

It assessed that South Korea has the fiscal room to raise "targeted transfers" to workers and firms hit by the pandemic and accelerate public investment plans.

The IMF added that a rise in the fiscal deficit this year can be offset by gradual consolidation in subsequent years.