Hong Nam-ki, Deputy Prime Minister, "Persuading 70% Payment of Emergency Disaster Relief Fund... Fiscal Efficiency Must Be Ensured"

"Advancement of H2 Economic Policy Direction Announcement to Early June"
"Accelerated Implementation of Additional COVID-19 Measures by End of May"

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is presiding over an expanded executive meeting via video between Seoul and Sejong at the Government Complex Seoul in Gwanghwamun on the 20th as part of the social distancing campaign related to COVID-19.

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, reiterated his position to maintain the payment criteria for the emergency disaster relief fund in response to the novel coronavirus disease (COVID-19) crisis at the lower 70% income bracket.

On the 20th, Deputy Prime Minister Hong presided over an expanded executive meeting held via video conference at the Government Seoul Office in Gwanghwamun, Seoul, stating, "The 70% payment criterion for the emergency disaster relief fund was determined after comprehensive review of the necessity, effectiveness, fairness, and constraints of support. Therefore, we must make every effort to explain and persuade the National Assembly to maintain this standard."

He particularly emphasized the need to accumulate more fiscal resources in preparation for the possibility of the COVID-19 crisis worsening. Deputy Prime Minister Hong said, "The fiscal authorities are not simply trying to save money unconditionally. While we must proactively support areas where fiscal roles are necessary in this unprecedented crisis, we should also strive to use resources more efficiently in higher priority areas." He added, "With the global economic growth rate forecasted to be negative due to the COVID-19 crisis and our economy unable to avoid damage, and given the uncertainty about when and how the ripple effects of COVID-19 will manifest, it is necessary to accumulate additional fiscal capacity and national bond issuance capacity to prepare for even more difficult situations ahead."

He further announced plans to strengthen the whole-of-government countermeasure implementation system and to advance the formulation of the second half economic policy direction, usually announced in July, to early June. He also mentioned at the meeting the intention to swiftly prepare additional measures addressing the economic impact of COVID-19 by the end of May in conjunction with the formulation of the second half economic policy direction.

Additionally, he stated that post-COVID-19 measures will be discussed through a task force (TF). He explained, "Leveraging the success and experience of Korea's quarantine model as momentum, we should utilize this as an opportunity for regulatory reform to foster new industries and future growth engines such as untact industries. We will form a 'Post-COVID-19 Response TF' within the Ministry of Economy and Finance and prepare a 'Comprehensive Post-COVID Economic Measures' together with economic ministries starting now."

He also emphasized, "The first quarter GDP growth rate will be announced within this week," adding, "Overall, the real economy impact of the COVID-19 crisis is likely to become fully apparent, and economic quarantine must be intensified."

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