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South Korea's finance minister on Tuesday pointed to early signs of a self-driven recovery in domestic demand and emphasised the need to strengthen productivity in the domestic service industry. Minister Yoon Jeung-hyun also stressed the need to keep the current account and government finances in good shape. But did not repeat his long-held pledge that authorities would maintain accommodative economic policy for an extended period.
"Although still far from sufficient, (annual) job growth has turned positive and the self-recovery power of the private sector is gradually improving," Yoon said during a seminar hosted by a research institute run by the ministry.
The ministry's economic policy bureau head Yoon Jong-won said later the economy had recovered from the crisis to a stage at which policymakers and the public were now able to start debating an exit strategy, but did not mention the proper timing for the central bank to start raising interest rates.

Copyright Reuters, 2010

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