South Korea plans to use various state-run funds to help stimulate its economy that has been affected by the general global slowdown this year, a top economic policymaker has said.

In a meeting with reporters over the weekend, Minister of Strategy and Finance Bahk Jae-wan said the country has made headway toward economic stability in the past year, but there is a need to fuel vitality and growth.

He said Seoul is not considering a move to ask parliament for a supplementary budget, but it does want to increase the use of public funds to prepare for uncertainties.

"Up to 20 percent of regular state-run funds and 30 percent of public financial funds can be increased at the government's discretion without getting prior parliamentary approval," he said.

Bahk said that there has been a steady increase in public funds in the past and that for 2012, the government plans to take similar steps.

"For this year plans are set to increase such funds as the Small and Medium Enterprise Establishment and Promotion Fund, Korea Credit Guarantee Fund, Korea Technology Credit Guarantee Fund and the Trade Guarantee Fund," the policymaker said. He said more details will be announced on the stimulus effort in late June.

The official, however, said that the government is committed to reaching a balanced budget in 2013 and will set next year's spending plan to meet the goal.

The comments come as the Bank of Korea (BOK) and many local and international organizations have lowered the country's growth forecast in the face of mounting challenges caused by persistent eurozone woes and sluggish economic conditions in the United States and China.

Seoul said Asia's fourth-largest economy could grow 3.7 percent this year up from 3.6 percent reached in 2011, but the BOK said 3.5 percent is more realistic.

The state-run Korea Development Institute also predicted economic growth of about 3.6 percent for the year with the International Monetary Fund and the Organization for Economic Cooperation and Development forecasting 3.5 percent and 3.3 percent growth, respectively. (Yonhap News)