The current push to implement labor market and broader structural reforms is critical to South Korea overcoming its current economic woes, the country's top policymaker said Sunday.

Speaking to reporters at a policy seminar on Geoje Island 470 kilometers southeast of Seoul, Finance Minister Choi Kyung-hwan pointed out that South Korea had always faced obstacles as it grew economically and now was no different.

He cited problems facing China and lingering uncertainties about the U.S.' stance on interest rates as some of the issues confronting the country.

"The country has repeatedly proved it can cope with adversity and I feel confident it can do so again, and make the next leap forward if proposed reform measures are pushed through," the official, who doubles as deputy prime minister in charge of economic affairs, said.

Choi, who is also a third-term lawmaker, said that while there is still a long way to go on the key issue of labor market reform, he felt substantial progress has been made at the tripartite talks held on Sept. 13. Representatives from labor, management and government agreed on key issues such as making it easier for companies to dismiss under-performing workers and change employment rules that may be disadvantageous to workers.

He then said efforts to implement reforms in areas such as the public sector, financial areas and education have struck a chord with overseas observers, playing a part in Standard & Poor's (S&Ps) raising South Korea's sovereign ratings by one notch to AA- last Tuesday.

The minister said that while it is hard to say for certain why the global credit appraiser decided to mark up the country's rating, the de-escalation of tensions along the inter-Korean border may have been a factor along with headway made on labor reforms.

"S&P has traditionally given considerable importance to inter-Korean relations," he said. Choi then said that efforts to reduce public sector debt may have also been a contributing factor.

The officials stressed the country should not become complacent because of the ratings evaluation but conceded it could help fuel economic confidence.

The government had to downgrade this year's growth target to 3.1 percent, from 3.8 percent, mainly due to anemic consumption, drop in exports and the outbreak of the Middle East Respiratory Syndrome outbreak. MERS claimed 36 lives and wrecked havoc with the service sector and consumer spending, forcing the government to ask lawmakers for an 11.53 trillion won ($9.92 billion) extra budget.

Choi, meanwhile, said that while he felt certain that South Korea can weather the latest difficulties, the country will invariably be swayed by developments taking place in China and the United States that are beyond its control and cautioned that it must be ready to face whatever obstacles may come. (Yonhap)