SEOUL - SOUTH Korea can ride out the global financial crisis through tax cuts, deregulation, spending increases and sufficient supplies of foreign and local currency, President Lee Myung Bak said on Monday.

Lee said in a speech to parliament that his government would provide unlimited liquidity in a 'preemptive, sufficient, decisive' manner to calm the financial markets.

He said Asia's fourth largest economy, with about 240 billion US dollars (S$362 billion) in foreign reserves, can overcome the foreign currency liquidity problem.

'Many people compare the current crisis to the foreign exchange crisis of a decade ago. But I can confidently say that there will never be the outbreak of another foreign currency crisis in South Korea,' the president said.

Earlier on Monday the central bank announced its largest-ever cut in the key interest rate to shore up the economy. -- AFP