SEJONG -- South Korea's financial authorities are closely monitoring the property market as ample liquidity could fuel a rise in home prices, Vice Finance Minister Kim Yong-beom said Wednesday.

South Korea has promised to spend some 270 trillion won ($225 billion) to cushion the economic blow from the coronavirus pandemic, with the Bank of Korea (BOK) cutting its key rate to a historic low.

"The government will closely monitor the market to prevent asset prices from excessively rising due to ample liquidity amid lower interest rates," Kim told a meeting with senior officials from financial regulators and the BOK.

On Tuesday, South Korea's main stock index closed higher for an eighth consecutive session, driven by hopes of a faster global economic recovery.

Kim said volatility in the stock market may increase unless an economic recovery at home and abroad is slower than expected.

Earlier in the day, Statistics Korea said the nation's jobless rate surged to a 10-year high in May as the coronavirus pandemic hammered job markets. The number of employed people fell by 392,000 to 26.93 million in May, marking the third consecutive monthly decline.

In a ray of hope for job markets, the pace of job losses eased in May. South Korea lost about 467,000 jobs in April, marking the sharpest monthly decline in more than 21 years.

Kim said the employment situation is still "grave," but the job market showed signs of a slight recovery. (Yonhap)