SEOUL, KOREA - The government held its 6th Crisis Management Meeting of 2012 on February 15 to discuss recent financial market trends and the reorganization of the country’s composite indexes of business indicators. Strategy and Finance Minister Bahk Jaewan chaired the meeting.

Minister Bahk said there are positive signs in domestic and overseas financial markets recently but difficulties continue in the real economy. The gradual recovery of the US economy is good news for Korea’s economy, which is vulnerable to external factors, but the overseas conditions remain uncertain due to high oil prices, China’s economic slowdown, S&P’s warning of an additional downgrade of its credit rating for the US, and the downgrade of credit ratings for 6 eurozone countries by Moody’s, he said.

Regarding the international financial markets, Minister Bahk said concern over a global economic recession has eased somewhat because indicators released by major countries have been better than expected since the end of last year. There is a possibility that the European economic crisis will subside because the Greek parliament approved an austerity bill, but Korea must thoroughly prepare for any crisis that can occur because the external uncertainties have not been removed, he said.

With parliamentary elections approaching and the term of the 18th National Assembly coming to a close, the minister expressed thanks to members of the assembly’s health and welfare committee for their efforts regarding revisions of laws that are expected to be passed in the current extra session. However, he said, there are still important reform bills that have not been addressed including ones for creation of jobs, improvement of medical care, and development of the service industry. The minister requested each ministry to quickly take measures to facilitate the passage of important bills related to the economy and the livelihood of citizens since the assembly’s term is nearly over.

In addition, the minister said the country’s composite indexes of business indicators, the main indexes for diagnosing the economic situation and determining investment trends, are being reorganized to sufficiently reflect the current situation of the economy and give outlooks for the future. He expressed hope that the reorganization will result in a more accurate view of the state of the economy.