A senior International Monetary Fund official has underlined the importance of fiscal health for South Korea, describing the country's regulations as a well fleshed out framework for medium-term management. 

Krishna Srinivasan, director of the Asia and Pacific Department at the IMF, made the remark during a briefing with Korean reporters on Friday on the sidelines of the IMF Annual Meetings in Morocco.

On Seoul's policies, the official positively assessed a reduction in the fiscal deficit ratio calling it appropriate and encouraging, and added it's important to maintain low debt levels to prepare against potential shocks.

On fiscal spending, the director stressed targeted support for those in need and pointed out it is "the right way to go" to reduce expenditures handed out during the pandemic.

He also called for gradually reducing the high household debt rate and in particular, risks related to home mortgage loans.

As for South Korea's economic growth, Srinivasan mentioned conditions in the IT sector and China's economy as key variables.

In its latest outlook, the IMF kept Korea's growth projection for this year at one-point-four percent while lowering next year's estimate from the previous two-point-four to two-point-two percent growth.

Explaining the downward adjustment, the agency cited the slowing Chinese economy and monetary tightening measures to tame inflation, among other factors.