Prime Minister Han Duck-soo on Tuesday called for preemptive responses to downside economic risks to cope with rising volatility in financial markets.

With major economies jacking up interest rates to deal with red-hot inflation, "concerns are also growing over uncertainties and volatility in our financial market," Han told a Cabinet meeting.

"It is time for agile and preemptive risk management," Han said.

Han also painted a bleak picture for next year's global economic outlook, saying that the global economy would be "more difficult" in 2023.

On Sunday, financial authorities announced plans to expand liquidity supply programs to at least 50 trillion won ($34.7 billion) as part of efforts to calm jitters in credit markets that have been strained by rising interest rates.

The Cabinet meeting came shortly before President Yoon Suk-yeol is set to give a budget speech at the National Assembly.

Han said the government's budget plan for next year is aimed at addressing concerns about people's livelihoods and helping the economy rebound.

Han asked the National Assembly to approve the budget bill within a legal deadline to the government to preemptively deal with economic risks at home and abroad. (Yonhap)