South Korean President Lee Myung-bak called on the government Thursday to prepare for front-loaded spending of next year's budget to help the country overcome both domestic and foreign economic challenges.

He said after receiving a policy report from the Fair Trade Commission that every effort must be made to ensure state funds are allocated to helping the country's underprivileged and bolstering the economy in the first half of next year.

Lee's call came despite the National Assembly holding up the passage of next year's spending bill.

"The president made clear the government must brace for an economic emergency situation," said a spokesperson for Lee.

The chief executive's remarks come as the finance ministry has repeatedly said next year's budget must be spent as soon as possible.

Money to be released early on in the year will be needed to fund projects that can improve the overall quality of life for low-income earners.

For 2012, Seoul said it aims to maintain stable macroeconomic policies while concentrating on stabilizing inflation and bolstering economic vitality so the country will be less vulnerable to external shocks.

The emphasis on maintaining stability comes after Seoul recently downgraded its growth forecast for 2012 to 3.7 percent, far lower than the 4.5 percent gain the government forecast back in September. For 2011, the government expects the economy to expand 3.8 percent.  (Yonhap News)