Sung Yoon-mo, KDI and Other Heads of Government-Funded Research Institutes Hold Emergency Meeting... "Mobilizing All Policy Measures"

Ministry of Industry: "Difficult to Be Optimistic About Exports... Oil Price Decline Poses Burden on Our Economy"
KDI: "Income Support for Vulnerable Groups"... Korea Institute for Industrial Economics and Trade: "Urgent Need to Stimulate Domestic Demand"

Sung Yun-mo, Minister of Trade, Industry and Energy./Photo by Hyunmin Kim kimhyun81@

On the 16th, Sung Yun-mo, Minister of Trade, Industry and Energy, held an emergency meeting with heads of government-funded research institutes to discuss measures to respond to the novel coronavirus infection (COVID-19).

The attendees unanimously agreed that, recognizing the current economic situation as an unprecedented emergency, all policy measures must be mobilized to overcome the crisis.

Minister Sung said in the afternoon meeting with the heads of research institutes, "Due to COVID-19, public concerns are growing and companies are facing many difficulties," adding, "In unprecedented situations, the government's response must differ from usual."

The Ministry of Trade, Industry and Energy recently assessed that the damage caused by COVID-19 is spreading throughout the real economy, and uncertainties are increasing in terms of duration and ripple effects.

Although exports turned positive in February, it is difficult to be optimistic about future export conditions due to the global demand slowdown, and the decline in oil prices is also expected to pose a burden on our economy and exports.

At this meeting, Minister Sung emphasized ▲ minimizing export damage and revitalizing the real economy ▲ responding to the decline in oil prices ▲ managing supply chain stability ▲ supporting corporate investment and regulatory reform.

The heads of government-funded research institutes focused their discussion on directions for overcoming the emergency situation.

The Korea Development Institute (KDI) analyzed that while the risk of COVID-19 damage amplifying into a financial sector systemic risk is not yet high, the global supply chain shock is significant.

KDI emphasized the necessity of liquidity supply to prevent bankruptcies among small and medium-sized enterprises and self-employed individuals, income support for vulnerable groups, and designing tax policies friendly to new industries.

The Korea Institute for Industrial Economics and Trade (KIET) forecasted that export decline and production sluggishness due to COVID-19 are inevitable. It mentioned that policy support to address corporate management difficulties and profit deterioration, along with active domestic demand stimulation aiming for a V-shaped recovery, is urgent.

The Korea Institute for International Economic Policy (KIEP) diagnosed that COVID-19 is different in scale from past crises as it suppresses economic activities comprehensively. It proposed focusing efforts on resolving domestic and international uncertainties through international policy cooperation using the G20 and transparent, proactive policy communication.

The Korea Energy Economics Institute (KEEI) analyzed that the recent drop in oil prices is caused by a sharp decline in demand due to COVID-19 and the failure of OPEC+ production cut agreements. Accordingly, it emphasized the need for policy efforts to expand the positive ripple effects of low oil prices.

An official from the Ministry of Trade, Industry and Energy stated, "Based on the matters checked and discussed today, we plan to swiftly implement COVID-19 responses, including minimizing damage to the real economy."

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