South Korea's finance minister and central bank governor met on Tuesday to discuss long-term policy initiatives for tackling the country's falling potential growth rate.

At the meeting, the policymakers exchanged opinions on various structural factors dragging down the nation's potential growth rate, which is the maximum growth an economy can achieve without triggering inflationary pressure, according to a statement released by the finance ministry.

They also agreed on the need to address the country's low birth rate, while Finance Minister Choi Sang-mok also emphasised deregulation and Bank of Korea Governor Rhee Chang-yong pointed out changes in the global trade environment.

South Korea's potential growth rate is estimated at around 2%, falling from around 5% two decades ago, policymakers have said. (Reporting by Jihoon Lee; Editing by Kim Coghill)