President Yoon Suk-yeol said Wednesday security conditions are tough amid talk of a possible North Korean nuclear test and called for a close monitoring of the situation.

Yoon made the remark during his first meeting with his senior secretaries after taking office the previous day.

"The security situation is tough," he said. "Foreign countries are worried and there's talk of a resumption of nuclear tests, so I think you will have to closely monitor and study the effects not only on security but also on other areas of state affairs in case such a situation arises."

Yoon also said the economy is in an extremely difficult state, with the biggest problem being inflation.

"We will have to look hard at the causes of rising inflation and the measures needed to curb them," he said.

Yoon also called for quickly compensating small merchants hit by COVID-19 business restrictions. (Yonhap)