SEOUL, Sept 25 Reuters South Korea39;s Finance Minister Choi Sangmok said on Wednesday that the government39;s policy priority was more focused on tackling slowing domestic demand than rising household debt in the short term.

As the deputy prime minister for economic affairs, I think the recovery of domestic demand is a little more important in the short term, said Choi, as he answered a question about policy priorities at a discussion forum.

The minister said that he expected the Bank of Korea to make a wise decision after a recent interest rate cut by the U.S. Federal Reserve.

The U.S. central bank last week kicked off an anticipated series of interest rate cuts with a largerthanusual halfpercentagepoint reduction that Federal Reserve Chair Jerome Powell said was meant to show policymakers39; commitment to sustaining a low unemployment rate now that inflation has eased.

The Bank of Korea last month held interest rates steady at 3.50, the highest since late 2008, as its board members were concerned about rising house prices and household debt, despite easing inflation and slowing domestic demand.

In August, South Korea39;s house prices picked up pace, with prices in the capital Seoul rising at the fastest rate in more than 412 years, even after a government policy package to boost supply in the real estate market.

Choi said the government would continue efforts to calm the housing market with sufficient supply and announce soon new measures to stabilise input…