South Korea’s finance minister said the government will mobilize all policy tools available to achieve the economic growth target of two-point-six to two-point-seven percent for this year. 

At an emergency meeting with the heads of economy-related ministries on Thursday, Minister of Economy and Finance Hong Nam-ki said the economy contracted more than expected in the first quarter amid deteriorating external and internal conditions and expanding downside risks.

His comments came after the central bank estimated that the country's gross domestic product experienced a point-three percent on-quarter contraction, the lowest growth since the fourth quarter of 2008. 

The finance minister cited the global economic slowdown and sluggish investment as backdrops of the poor economic figure.

Hong pointed out that exports of semiconductors, which take up 21 percent of the country’s total exports, plummeted as the global chip market is slowing down. He added exports of chips fell for four consecutive months and that investment also remained sluggish due to external uncertainties.

Hong said he expects economic conditions to improve in the second quarter and latter half of the year as the government is preparing an extra budget while improving conditions for corporate investment.