SEOUL, Nov 19 (Reuters) - South Korea plans to unveil

incentives for long-term stock investors, while making efforts

to ensure foreign exchange stability, its finance minister said

on Wednesday.

Since taking office in June, the administration of President

Lee Jae Myung has vowed various reforms to boost the domestic

stock market, driving a rally in the benchmark index this year.

The won currency has weakened 0.8% this week to trade

at 1,464.8 a dollar on Wednesday, after last week's sharp gains

following Finance Minister Koo Yun-cheol's pledge for market

stabilising measures.

"We plan to introduce incentive measures for small

investors, who stay in capital markets for a long time or invest

in certain stocks in the long term," Koo told reporters.

He did not say when the measures would take effect, however.

Regarding the foreign exchange market, Koo said the

government was consulting primarily with market participants to

prevent excessive uncertainty and instability in exchange rates.

Koo said he had met major exporters, who were not

repatriating U.S. dollars earned abroad, but has yet to meet

officials of the national pension fund, which has a growing

demand for overseas investment.

"The government is spending taxpayers' money for U.S.

investments, in return for lower tariffs, which benefit

companies," Koo said, referring to a $350-billion investment

package included in a trade deal with the United States.

Companies should be aware of these efforts by the government

and taxpayers, he added.

Referring to the investment package, Koo said a new entity

would be set up to manage the funds and proactively participate

in U.S. projects, with a bill on the package set to be

introduced in parliament this month.

"We will have to propose projects to the United States first

and be proactive to take the lead in value chains of new growth

engines," Koo added.

He was echoing comments on Friday by the industry minister

that South Korea had already proposed some projects.