"The government will make efforts to provide a momentum for facility investment to turn around," Kim said in an economy-related ministers meeting.

Facility investment rebounded in September, gaining 2.9 percent on-month, following a 1.6 percent on-month drop in August.

But between March and August, corporate spending took a downward path, raising concerns that Asia's fourth-largest economy is heading into a slowdown, with private spending also showing signs of a slump.

Earlier this week, South Korea's government said it will provide more financial assistance and tax incentives to boost sluggish facility investment, accelerate deregulation, stimulate innovation-led growth and create jobs.

Under the measures, private sector-led investment projects will be implemented faster than scheduled, and a total of 15 trillion won worth of financial help will be unveiled to help companies increase investment.

The minister also said external risks are growing, and the South Korean economy is increasingly facing downside risks.

"While it is important to create more jobs and invigorate the economy, it is time to take a look at structural reforms," Kim said. (Yonhap)