SEOUL - SOUTH Korea has greater room to manoeuvre with its monetary and fiscal policy than other countries, a government official said on Sunday following a meeting of top officials and the central bank chief.

Mr Cho Won-dong, deputy minister for national agenda at the prime minister's office declined to comment when asked if his comments suggested the government supports further rate cuts by the Bank of Korea.

South Korea has put together stimulus packages and lowered policy rates sharply to cushion its economy from the spreading global downturn. -- THOMSON REUTERS