The increase in jobs last month was the smallest since January 2010, when 10,000 jobs were lost, according to Statistics Korea.

There has been criticism that the Moon Jae-in government's signature economic policies, such as a hike in the minimum wage, are part of the reason for the poor job market and widening income inequality.

Earlier, a state panel decided to raise the country's minimum wage for next year by 10.9 percent to 8,350 won ($7.44) per hour, following a 16.4 percent hike this year.

The finance minister said that a series of policy steps should be implemented in such a way that the market and society can adapt, signaling more flexibility toward critical issues going forward.

"We are reviewing the policies with that in mind," the minister said.

The minister noted that in addition to the economy's structural problems and economic factors, there were some "negative" sides to implementing the minimum wage hike and a shortened working hours system, which contributed to worsened job conditions.

"Our economy's most serious problem is a decline in the country's growth potential stemming from a low growth trend," Kim said. "The government will soon unveil a comprehensive plan to realign the industrial structure."

The minister said the government would take even stronger measures if home prices do not stabilize.

Last month, South Korea's government said it would levy higher taxes than originally planned as it strives to rein in soaring property prices.

Over the past year, the Moon Jae-in government has unveiled a series of measures to curb housing prices that have had little impact on the market.

Alarmed by the fastest housing price gains in a decade, Seoul said it would further raise the tax burden on owners of high-priced houses and multiple homes and seek to raise the taxable rate of a property, which is now 80 percent of the government-set value. The rate should climb to 100 percent by 2022, compared with the originally proposed 90 percent by 2020.

"I think the new measures will help stabilize housing prices," Kim said. "The government will implement property-related policies in a consistent manner."

Despite a series of measures to rein in soaring prices, apartment prices in the affluent Gangnam district and some other neighborhoods have jumped on hopes of reconstruction projects moving forward and ample liquidity circulating in the economy.

The Bank of Korea's eight rounds of rate cuts since 2012 have helped send home prices and household debt to record levels as more people take out loans to buy homes. (Yonhap)