Will Additional Budget for COVID-19 Be Prepared... President Moon Says "All Possible Measures Will Be Mobilized" (Comprehensive)

State Council Calls for 'Policy Imagination Beyond Expectations'... Demands Measures Such as Consumer Coupons and Purchase Refunds

[Asia Economy Reporter Ryu Jeong-min] "Do not debate whether there is precedent or not; bring out all possible measures and mobilize every available means."

President Moon Jae-in's urgent directive regarding the 'Novel Coronavirus Infection (COVID-19)' at the Cabinet meeting on the 18th stems from the judgment that the vitality of the real economy has significantly declined.

This reflects the recognition that it is time to prepare extraordinary measures based on the exceptional economic situation. President Moon ordered, "While the government does its best in quarantine efforts, it must respond strictly with the awareness that this is truly an emergency economic situation due to the economic impact of COVID-19."

[Image source=Yonhap News]

Earlier, at the New Year's work report session of key economic ministries including the Ministry of Economy and Finance on the 17th, President Moon said, "The economic damage from COVID-19 is felt more severely than during the 2015 MERS (Middle East Respiratory Syndrome) outbreak," expressing concern that "if the recession prolongs, it will cause great damage not only to our economy but also to people's livelihoods."

He urged economic ministers to recognize the emergency and serious situation and prepare preemptive solutions. Prime Minister Chung Sye-kyun emphasized on the same day, "Normally, the Ministry of Economy and Finance prioritizes accuracy over speed, but now, to respond to COVID-19 and promote economic vitality, speed is more required than the usual strength of accuracy."

At the Cabinet meeting, President Moon stated, "Extraordinary measures that utilize and mobilize all means available to the government are absolutely necessary at this time," emphasizing, "The first supplementary budget approved today is just the beginning, and early budget execution is a basic measure that must be taken." He also mentioned the possibility of preparing an additional supplementary budget with the cooperation of the National Assembly.

President Moon urged, "Since this is an emergency period, we must act urgently without delay. I hope the National Assembly will also cooperate in overcoming this extraordinary economic situation." Through the phrase "policy imagination beyond expectations," he called for the government's proactive response.

Specifically, President Moon stressed the necessity of special financial support for small and medium-sized enterprises and small business owners, tax burden relief measures, rent relief for small business owners, expanded incentives to revitalize corporate investment, bold regulatory innovation, consumption coupons, purchase amount refunds, and revitalization of traditional markets, alleyway businesses, and local economies.

Consumption coupons were mentioned as a measure to stimulate domestic demand during the Lee Myung-bak administration. This method activates consumption by including purchase coupons when buying specific products. Purchase amount refunds are a method to promote consumption by refunding a certain amount when buying specific products.

[Image source=Yonhap News]

President Moon's urgent directive is also related to the demands of business leaders. Park Yong-man, Chairman of the Korea Chamber of Commerce and Industry, said at the President-Business Leaders meeting on COVID-19 response on the 13th, "It is extremely important that we respond proactively," and requested, "I ask for the government's concentrated support throughout February so that normal operations in China can be resumed quickly."

COVID-19 is a matter involving complex domestic and international variables. The government and business leaders share the common understanding that China's economic damage could directly impact Korea. President Moon expressed concern, saying, "Supply chains and production activities linked to China are being disrupted," and "Exports to China, which accounts for one-quarter of our export share among global trading countries, are sharply decreasing."

Considering past epidemics that caused the global economy to suffer, it is pointed out that this situation should not be taken lightly. President Moon said, "The impact on service industries such as tourism, culture, and leisure is also severe, consumption and domestic demand are greatly shrinking, and the worries of companies and self-employed individuals are deepening," urging, "I hope you will accelerate efforts to diversify exports, foster the materials, parts, and equipment industry, and pioneer new markets."

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