As the COVID-19 pandemic continues to spread, what began as a health and quarantine crisis is causing a worldwide economic burden. These changes in international economic conditions such as the drop in the global trade volume and limited cross-border activities is having a great impact on the Korean economy, which is highly dependent on external factors.
In response to such widespread impact of the pandemic, the Korean government introduced various support measures to protect the public, and particularly those most vulnerable to economic contractions – low-income families, informal-sector employees, part-timers, women, and the disabled.
The country’s 3P response strategies focus on protecting the vulnerable and small businesses, preserving economic resilience and preparing for the post COVID-19 era.
First, the government announced special measures worth 10 trillion won for employment stability and to create jobs with the aim to protect the general public from the current economic crisis.
Second, as part of efforts to stabilize the securities and bond markets, the government has operated the Bond Market Stabilization Fund and Securities Market Stabilization Fund.
Third, the government decided to provide Emergency Disaster Relief Payments to all households for a total amount of 14.3 trillion won (equivalent to approximately 11.9 billion US dollars as of June 9).
Fourth, the government is planning to pay the expenses incurred by the public sector for restaurants, events, and item purchases in advance.
Fifth, in a situation where there are concerns over a plunge in global demand and Global Supply Chains (GSCs), the government is putting programs in place to support afflicted businesses.
Sixth, the government took action to offset the negative impact of the pandemic on major industries of the country.
Finally, the government announced its economic policy directions for the second half of the year, which cover establishing the foundation for the Korean economy that will play a leading role in ushering in the post COVID 19 era.
Further details of ROK’s economic response to COVID-19 can be found here.