Seoul's finance chief has stressed the need for expansionary fiscal policies, despite the country's growing debt.
Finance Minister Hong Nam-ki said on Thursday that the country's debt-to-GDP ratio will surpass 40 percent next year, given a decline in tax revenue as well as expansionary policies.
The ratio, typically seen as a measure of fiscal soundness, is expected to hit 40.2 percent in 2020, topping 40 percent for the first time.
But the minister said expansionary policies are needed to revitalize the economy and support structural reform.
He also said the government will take measures to prevent instability caused by the trade spat between the U.S. and China and volatility in the foreign exchange market.