A former transportation minister and ruling party lawmaker will take control of the country's economic policymaking as Asia's fourth-largest economy strives to gain growth momentum in the new year. 

Yoo Il-ho, who won two terms in Seoul's Songpa district in 2008 and 2012, and was the country's Minister of Land, Infrastructure and Transport this year, has been named the new finance minister.

He will be tasked with getting the economy back on its feet, as its growth falters in the face of weak exports, industrial output and investments.

The finance ministry recently lowered the growth estimated for 2015 from 3.1 percent to 2.7 percent, with next year's growth also being marked down from 3.3 percent to 3.1 percent. Both these numbers are down from the 3.3 percent growth reached in 2014.

The 60-year-old Yoo, who will also hold the position of deputy prime minister in charge of economic affairs, will be taking over from Choi Kyung-hwan who has held the post for one and a half years, and will be returning to the National Assembly to carry on as a lawmaker for the ruling Saenuri Party.

Choi is credited with stabilizing the economy following the Sewol ferry tragedy last year that left more than 300 people dead and the more recent Middle East Respiratory Syndrome by calling for a 11.5 trillion won ($9.7 billion) extra budget.

Observers said that Yoo, who graduated from Seoul National University with a bachelor's degree in economics in 1981, has a deep understanding of economic affairs after having worked for Korea Development Institute and the Korea Institute of Public Finance for two decades.

He is currently a member of the National Assembly's Science, ICT, Future Planning, Broadcasting and Communications Committee and is viewed as a confidant of President Park Geun-hye. (Yonhap)