Emergency Economic Measures Meeting Launched... Experts Say "Response Plans Need Redesign"

President Moon Jae-in Forms Meeting Body... First Meeting on 19th
"We Must Consider This Crisis Greater Than IMF and Devise Response Measures"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporters Kim Hyun-jung, Jang Se-hee, Moon Chae-seok] The government's decision to hold a regular emergency economic meeting chaired by President Moon Jae-in reflects the sense of crisis that the novel coronavirus disease (COVID-19) has materialized into a complex crisis impacting both the domestic financial and real economies. Experts view the current situation as more severe than the 1998 foreign exchange crisis (IMF) and the 2008 global financial crisis, advising that the emergency economic meeting should be used to redesign comprehensive response measures.

According to the Blue House and the Ministry of Economy and Finance on the 18th, the first emergency economic meeting chaired by President Moon scheduled for the 19th will discuss an overall diagnosis of the current situation and the formulation of macroeconomic countermeasures. Following support measures for specific industries such as aviation, transportation, tourism, performance arts, and shipping announced through previous crisis management meetings, the plan is to examine the crisis situation including the financial markets.

Experts emphasize that through the swiftly convened emergency economic meeting, the government should discuss more comprehensive measures while carefully reviewing sensitive issues such as structural adjustments in specific industries and fiscal soundness.

Professor Heo Yoon of Sogang University Graduate School of International Studies stated, "The government should not only increase the trade finance budget and attract returning companies to promote exports but also implement support policies to strengthen companies' long-term fundamentals, such as postponing the application of the 52-hour workweek system, temporarily freezing the minimum wage, and enhancing labor flexibility."

Professor Kim Sang-bong of Hansung University’s Department of Economics mentioned the need for overall industrial restructuring. He emphasized, "Declining industries and those lacking technological capabilities should be boldly phased out," adding, "This opportunity should also be used to discuss restructuring in the service industry." He argued that discussions on fiscal soundness, including national debt, are necessary alongside support. He stressed, "The emergency economic meeting should consider macroeconomics, industry, and finance altogether," and "It is essential to listen to experts in industrial sectors who understand the situation by industry and voices from the field."

More radical support was also demanded for small and medium-sized enterprises (SMEs) and self-employed individuals facing temporary liquidity shortages that could lead to 'profit-making bankruptcies.' Professor Jung In-kyo of Inha University’s Department of International Trade stated, "Measures must be devised to save SMEs and self-employed individuals who could face profit-making bankruptcies." He emphasized, "Government-level credit provision and proactive responses from financial institutions are necessary." The role of strengthening multilateral cooperation as a channel was also raised. Professor Choi Won-mok of Ewha Womans University Law School urged, "Although it will not be easy, Korea must show its presence in multilateral cooperation by reaching progressive agreements with Japan and leading tariff dialogue between China and the United States."

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