South Korea's highest economic official vowed Sunday to speed up economic reforms as financial markets recoiled at the historic impeachment of President Roh Moo-Hyun.
"I will accelerate the implementation of restructuring," Finance and Economy Minister Lee Hun-Jai told reporters.
He said the government would speed up the sale of troubled financial institutions and the implementation of measures aimed at curbing credit defaulters.
Roh, the first president to be impeached in a parliamentary vote, has been suspended from office while the Constitutional Court decides whether to confirm or reject last week's result.
The vote tipped South Korea into uncharted political waters and rattled financial markets, sparking panic-selling and protests from angry supporters of the former human rights lawyer.
However Lee said financial markets would regain stability soon as the impeachment had little impact on capital expenditures by domestic companies. "The stock market in particular is likely to return to normal," he said.
The minister added that the government would lose no time in implementing a package of measures unveiled last week to bail out smaller debtors.
Credit rating agency Standard and Poor's said last week that South Korea's corporate and individual defaults may rise further, raising questions about trends in the country's credit quality.
Since early last year, domestic demand was hit hard by credit card turmoil, the chief culprit behind South Korea's economic slump in 2003.
Higher costs stemming from global raw material prices and a rise in interest rates have also served to further depress the pace of economic growth, S and P said.
The government plans to launch an emergency inter-ministerial task force for market stability.
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