President Moon: "COVID-19 Economic Impact Very Serious... Emergency Situation"

President Moon Jae-in is presiding over a Cabinet meeting at the Blue House on the 18th. [Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] President Moon Jae-in said on the 18th that the economic impact of the coronavirus disease (COVID-19) crisis is "much more serious than expected" and emphasized that "we must respond strictly with the awareness that this is truly an 'emergency economic situation.'"

President Moon presided over a Cabinet meeting at the Blue House that morning and said, "We must devise preemptive and extraordinary measures in both areas of public safety and the livelihood economy." In his opening remarks at the meeting, President Moon mentioned the word 'emergency' six times, showing no concealment of the sense of crisis.

He particularly focused on the worsening COVID-19 spread situation in mainland China, unlike the calming trend domestically. President Moon expressed concern, saying, "Supply chains and production activities linked to China are immediately facing disruptions, and exports to China, which accounts for a quarter of our export volume among global trading partners, are sharply decreasing." He added, "If China's economic situation deteriorates, we will suffer the greatest damage," emphasizing, "This is an absolute time when extraordinary measures using all means available to the government are necessary."

At the Cabinet meeting that day, the government approved the first supplementary budget of 104.1 billion won for emergency COVID-19 quarantine measures. President Moon said, "The supplementary budget is just the beginning, and early budget execution is a basic measure that must be taken," adding, "This alone is far from sufficient. To respond to the 'emergency economic situation,' do not impose any restrictions and demonstrate policy creativity beyond expectations." This statement is interpreted as a reference to the government's fiscal spending, including the preparation of an additional supplementary budget.

President Moon also ordered "strong support measures" for various economic actors such as large corporations, small and medium-sized enterprises, and small business owners, saying, "Consider bold measures for special financial support and tax burden relief." To stimulate the weakened consumption, he gave specific instructions, saying, "Consider unprecedented levels of support measures if necessary for traditional markets or local commercial districts, along with consumption coupons or purchase amount refunds." The issuance of consumption coupons was also implemented during the Lee Myung-bak administration in 2009 to stimulate consumption amid the financial crisis.

President Moon emphasized prompt execution, saying, "Timing is crucial in policy," and "Since this is an emergency period, we must act urgently without delay."

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