South Korea's Deputy Prime Minister Jin Nyum rejected suggestions his government's easing of restrictions on conglomerates signalled a retreat from its commitment to reforms.

Jin said in a speech to investors that the government remains fully committed to restructuring principles.

On Thursday, Seoul announced it was helping the conglomerates, known as chaebol, cope with worsening economic troubles by easing restrictions imposed at the height of the Asian financial crisis.

It extended by a year a deadline for the country's top 30 conglomerates to cut holdings in sister firms and said their investment in other companies which strengthened their core businesses would not be subject to the investment limits.

Jin, who is also minister of finance and economy, acknowledged the concern created by the government's easing of restrictions but said the move removed "some kinds of overregulation".

South Korea's chaebol have been blamed for the disaster that struck South Korea when the Asian financial crisis erupted in 1997 after expanded rapidly with easy cash from compliant state-run banks.