South Korea's economy is steadily improving from a slump thanks to government-led stimulus efforts, but the recovery momentum still remains weak, the finance minister said Friday.

"Our economy is steadily improving out of the second-quarter slump, driven by expansionary macroeconomic policies and property-boosting plans," Finance Minister Choi Kyung-hwan said at a meeting with heads of major economic research institutes in Seoul.

"In the third quarter, government spending and investment in construction increased, recovering to pre-Sewol levels. Warmth is now being felt even in the real estate market," he added. 

The Sewol ferry sinking in April left more than 300 people dead, hitting the retail and tourism sectors the hardest as consumers restrained from spending as they mourned for the victims.

Choi, however, noted that the overall recovery momentum is weak and that money is not flowing well due to lack of entrepreneurship.

He cited structural reform as a key to attain an actual full-fledged economic recovery.

"There is a mountain that is steep but should be surmounted to turn the positive signals of the economic rebound into a full-fledged real economy recovery," Choi said. "That is structural reform."

He also said that the government should remain vigilant next year as uncertainty at home and abroad is expected to linger with worries over slowdowns in the economic recoveries in Europe and China.

Friday's meeting was arranged to listen to opinions from experts before the government draws up its 2015 economy management plan, including updated growth outlooks. The plan is to be unveiled next month.

Observers expect that the government will downgrade its 3.7 percent growth projection for this year in consideration of the latest economic and market situations. The government's growth estimate is 2-3 percentage points lower than projections made by major local and foreign think tanks. (Yonhap)