S. KOREAN EXPERTS CALL FOR LONG-TERM STEPS TO TACKLE ECONOMY.

SEOUL, Aug. 2 Asia Pulse - The government needs to take comprehensive measures rather than makeshift actions in order to solve the country's economic woes, private-sector economists said today.

Their suggestion comes as the world's 11th-largest economy is considered still in a serious situation, with exports, its main driver, slackening and domestic demand showing no signs of recovery.

The economists' proposal is also based on an assessment that the government's economic stimulus has so far focused on boosting consumption instead of laying the foundation for economic growth.

In an effort to kick-start the slumping economy, the government spent a record 87.5 trillion won (US$74.99 billion) in the first half, or 55 per cent of its 2004 budget.

But the fiscal spending, which came in the midst of tax cuts, is widely believed to have failed to give the economy a much-needed shot in the arm.

Bae Sang-keun, a researcher at the Korea Economic Research Institute, called on the government to put forward a policy mix rather than come up with sporadic makeshift efforts.

"Instead of taking knee-jerk measures, the government should take a more fundamental and comprehensive approach toward economic problems," he said.