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South Korea Won’t Adopt Expansionary Economic Policy, Bahk Says

The South Korean government will not take expansionary policy action to spur the economy as the nation is expected to follow a growth path projected last December, Finance Minister Bahk Jae Wan said.

The economy faces both “upside and downside risks,” Bahk said at a press briefing today. Upside risks include a better-than-expected U.S. economy, progress on the European debt crisis, the Korea-U.S. free trade agreement taking effect in March, and stabilizing global financial markets, he said.

The nation’s exports in February may have expanded more than 10 percent from a year ago after a 7 percent fall in January, Bahk said. The trade data will be released tomorrow.

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