Hong Nam-ki "Downward Pressure on Economy Expected... Export Support Measures to Be Prepared in February" (Update)

China's Economy Expands Its Share in Our Economy... Minimizing Domestic Economic Impact

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 3rd regarding the novel coronavirus infection (Wuhan pneumonia), "If an early end is not achieved, it is expected to act as a downward pressure on the economy, so it is necessary to respond with special vigilance and tension." The government plans to prepare export support measures this month focusing on resolving management difficulties and diversifying markets for export companies.

Deputy Prime Minister Hong made these remarks at a meeting of related ministries on the response to the novel coronavirus held at the Government Seoul Office Building on the same day. The meeting discussed ▲ measures to minimize economic impact ▲ analysis of the global, Chinese economy and our economy ▲ domestic and international financial market trends ▲ monitoring the spread of the novel coronavirus.

Hong said, "It is regrettable that the novel coronavirus outbreak occurred at a time when signals of economic improvement were appearing in production, consumption, investment, and economic sentiment, raising concerns that it could pose a risk to our economy." He added, "The government will prevent the spread of the novel coronavirus without human casualties, minimize the economic ripple effects, and maintain the momentum for economic recovery."

He also added, "So far, the impact of this incident on our economy is limited, but it is difficult to predict the future development of the situation."

For export companies, export support measures will be prepared within this month. In addition, policy fund support will be strengthened for industries at risk of damage, and support measures such as reducing operating costs for the industry will be prepared.

The government also mentioned that it will monitor market disruption activities such as price increases of masks and hand sanitizers and unilateral transaction cancellations. To stabilize mask supply, a joint inspection team of the central government and local governments will be activated, and a notice banning mask hoarding will be announced in February.

He also stated, "Considering the significant expansion of the Chinese economy's share in our economy, we will thoroughly analyze the impact on the Chinese and global economies according to scenarios," and "We will focus all capabilities on minimizing the impact on the domestic economy."

Additionally, separate response teams will be activated by relevant ministries for export-related food and lodging industries, tourism, transportation and logistics, small and medium enterprises, and self-employed individuals expected to be affected depending on the transmission path.

This content was produced with the assistance of AI translation services.