Lingering global uncertainties such as the eurozone debt crisis are posing risks for the South Korean economy as they threaten to sap its growth momentum, the top economic policymaker said Wednesday.

“The Korean economy faces such challenges as eurozone woes, the standoff over Iran’s nuclear ambitions and signs that the U.S. economy could face problems,” Finance Minister Bahk Jae-wan told a weekly meeting of economic ministers.

“Our economy relies heavily on autos and semiconductors to generate growth, with persistent global downside risks fueling uncertainties.”

Bahk’s remarks came as Asia’s fourth-largest economy is showing signs of improvements. The country’s industrial production jumped 14.4 percent on-year in February, while consumer price growth slowed to 2.6 percent last month, the lowest in 20 months.

The minister added that the decision by Moody’s Investor Service to upgrade the country’s government bond rating outlook from A1 “stable” to A1 “positive” is testament to improving economic conditions.

He said that efforts must be made to improve the country’s fiscal fundamentals and manage possible risks posed by North Korea.

The minister, meanwhile, said that the revisions to the country’s commercial law that goes into effect on April 15 could promote growth of new venture startup companies.

The revised law allows for the creation of limited liability companies and limited partnerships that can improve flexibility in running businesses as well as enhance corporate transparency and accountability. 

(Yonhap News)