S. Korean administration to maintain macroeconomic expansioinary policy stance in third year

Kicking off his third year in office in March, South Korean President Lee Myung-bak is expected to keep his keen focus on the economic recovery, with his government continuing active policy support in macroeconomic policies.

Wrapping up the last two years devoted to restoring the nation' s economic health, the Lee Myung-bak administration is ready to continue leading the way toward a full-fledged recovery, keeping up its policy measures conducted during the past two years.

CRISIS MANAGEMENT EFFORTS DURING PAST TWO YEARS

Hard struck by the global financial turmoil, sparked by the collapse of Lehman Brothers, just six months after the inauguration, the Lee regime has been placing top priority on weathering the financial crisis as soon as possible.

Amid deepening concerns over the instability in financial and foreign exchange markets, as well as in exporters, the government declared a virtual emergency government and launched a crisis management council meeting.

In line with the emergency moves, the presidential office set up an economic war-room at the presidential office to better monitor the economy.

The government unfolded various policy measures to fight the economic downturn, including fiscal stimulus packages and expansionary monetary policies.

Among the government's aggressive fiscal stimulus measures were tax cuts, a supplementary budget worth 28.4 trillion won (25 billion U.S. dollars), and frontloading of the fiscal expenditure.

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