The government plans to come up with measures to fuel economic growth despite mounting challenges that could derail recovery efforts, the top economic policymaker said Tuesday.

Addressing lawmakers at the National Assembly's Special Committee on Budget and Accounts in Seoul, Finance Minister Choi Kyung-hwan pointed out that external and internal problems were posing problems for Asia's fourth-largest economy.

South Korea's growth was helped by a combination of low crude oil prices, low interest rates and other positive factors, but it was offset by the outbreak of Middle East Respiratory Syndrome in late May, falling exports and structural shortcomings in the country's labor and financial markets, he said.

The finance minister said South Korea is faced with downside risks, such as a possible U.S. interest rate increase, China's slowing economic growth and financial market instability in emerging markets.

"Unless meaningful measures are taken, the country faces the prospect of losing whatever growth momentum it has kept alive," Choi warned.

The policymaker argued that in light of the country's demographics and global economic developments, it is unrealistic to think a high rate of growth can be archived, but every effort must be maintained to ensure market dynamism.

In order to help bolster growth, the government will implement sustainable fiscal policy measures and promote reform in the labor, financial, education and public sectors, he said.

Choi, who doubles as deputy prime minister in charge of economic affairs, also said that efforts are under way to change the education system so it can produce workers that are in demand by businesses.

The minister added that the government is also committed to supporting the livelihoods of ordinary people, dealing with rising household debt and encouraging business restructuring.

On the issue of tax revenue shortfalls that have been a source of concern for South Korea for the past few years, he said the government is in the process of getting rid of tax breaks and ferreting out those that have dodged paying their dues.

"If the country can boost growth, it can receive more taxes that can better cover revenue shortfall problems," he said.

The finance minister said to address a host of challenges facing the country, it is critical for the National Assembly to lend its support to the government at this juncture. (Yonhap)