South Korea's top economic policymaker and the chief of the central bank said Tuesday that more prudent risk management is necessary as much of the idle money is flowing into assets, such as property and stocks.

"The financial market showed stability in the wake of the COVID-19 pandemic, but there are growing concerns over the growing gap between the real economy and the financial sector," Finance Minister Hong Nam-ki said in a message for the new year to financial firms.

"More prudent risk management should be in place to ensure financial stability."

Bank of Korea (BOK) Gov. Lee Ju-yeol also said the nation's economy must address the issue of liquidity hoarding in asset markets in the aftermath of the pandemic, while urging financial institutions to continue to support households and companies this year, citing heightened concerns over the pandemic and its economic fallout.

The BOK has said it will maintain an accommodative monetary policy this year to help the economic recovery from the pandemic.

In November last year, the BOK held its policy rate at a record low of 0.5 percent while slightly revising up last year's economic outlook.

Driven by signs of a modest recovery in exports, the BOK revised up its 2020 economic growth outlook to a 1.1 percent contraction, compared with a previous forecast of a 1.3 percent retreat.

The BOK expected the economy to grow 3 percent in 2021, more than a previous forecast of a 2.8 percent expansion. (Yonhap)