"Startups, their growth and deregulation are very important (for innovation-led growth), and the government will continue efforts for deregulation and induce a flexible labor market," the official said.

Kim is expected to step down soon following a Cabinet reshuffle. Hong Nam-ki, who has been tapped to succeed him, is scheduled to appear before a parliamentary hearing before taking the post of finance minister.

The incumbent Moon Jae-in administration has been focusing on key economic policies centered on income-led growth.

Earlier, the government announced a road map with four key principles -- income-led growth, a job-creating economy, a fair economy and innovative growth -- while it came up with a tax code revision involving a hike of both income taxes for well-off individuals and corporate taxes for businesses. (Yonhap)