The government noted that the South Korean economy faced increasing downside risks in the first quarter with major economic indicators remaining weak. 

The Ministry of Economy and Finance stated in its monthly economic assessment report published on Friday that downside risks expanded in the first quarter due to the global economic slowdown as well as the sluggish semiconductor market. 

It also said that amid the lingering uncertainties over Britain's planned departure from the European Union, the trade war between the U.S. and China has emerged as a factor in slowing down the global economy while increasing the volatility of the financial market. 

South Korea's economy saw an estimated point-three percent contraction in the first quarter of the year from three months earlier, marking the worst performance in a decade.

The report noted that major indicators rebounded in March due to a base effect from the previous month. 

The ministry stressed risk management as well as the passage of the supplementary budget bill at the National Assembly in order to prop up the economy. It also emphasized the importance of promoting investment and start-ups coupled with deregulation.