Investors have broadly welcomed the election result

Voters have given a majority in the National Assembly to the liberal Uri party, which supports embattled President Roh Moo-hyun.

"This will greatly help the economy's international credibility," said Finance Minister Lee Hun-Jai.

"The government will strive to accelerate recovery."

The end of the elections, he said, meant both the government and the public could concentrate on the economy once again.

Ups and downs

Investors did not seem quite so certain: South Korean shares fell by 1% after the poll results.

It's back to business as usual, says Mr Lee

But most analysts said the longer-term economic effects would be positive, if parliamentary support helps shore up Mr Roh.

The president was impeached by opposition politicians last month, and his fate will be decided by the Constitutional Court.

The impeachment was the culmination of a lengthy political stand-off, which has worried investors and clouded a previously sunny economic outlook.

Mr Lee was at pains to stress that it was time to return to business as usual.

Subtle shifts

The Korean Government has pursued a vigorous policy of economic liberalisation, part of the fall-out from the financial crises of the late 1990s.

A Uri majority in parliament will help smooth that often-conentious process, analysts say.

And while the Uri victory does not herald a sharp policy shift in Korea, there could be nuances that may affect the economy.

It is in favour of enhanced economic links with the Stalinist North, a region where many southern companies are keen to invest.

Uri is likely to use its influence to push for increased aid to the north, and a moderation of the tough international stance on the security threat posed by Pyongyang.