SEOUL - SOUTH Korean President Lee Myung-Bak told his ministers on Tuesday to take steps to reduce market interest rates in line with the central bank's steep cuts in the benchmark rate, his office said.

Mr Lee gave the directions to his cabinet via an Internet video link from Brazil where he is on an official visit.

'The foremost task for the cabinet to tackle is to ensure that market interest rates should fall, in line with the central bank's steep rate cuts,' he was quoted as telling them.

'The market interest rates have remained unchanged, inflicting enormous financial burdens on ordinary households.'

Since October 9, the central bank has cut its key rate by 1.25 per cent, saying the economy is slowing down sooner than expected amid global financial turmoil.

Mr Lee instructed the regulatory Financial Services Commission to take extra measures to bring down rates.

Its vice-chairman Rhee Chang-Yong said it was reviewing possibilities and would report within the week.

Certificates of deposit rates are falling and households will probably be burdened less by mortgage-related borrowing in the near term, he said. -- AFP