Kim Yong-beom "The Shock of COVID-19 Is Just Beginning... Creating New Jobs Through the 'Korean New Deal'" (Comprehensive)

Macroeconomic and Financial Meeting on the 4th: "Closely Monitoring International Oil Prices and Emerging Markets"
"Accelerating New Job Creation through the Korean New Deal Project"

[Image source=Yonhap News]

[Asia Economy Reporters Kim Bo-kyung and Jang Se-hee] Kim Yong-beom, the 1st Vice Minister of Strategy and Finance, emphasized regarding the novel coronavirus infection (COVID-19) situation, "The full-scale shocks such as real economy recession and unemployment are just beginning," and added, "It is time for a strong 'economic quarantine' to respond to the economic crisis and lead the post-COVID era."

On the morning of the 4th, Kim chaired the macroeconomic and financial meeting at the Seoul Banking Hall and said, "Considering the risk factors that could amplify volatility in the global real economy and financial markets, we cannot afford to lower our guard."

He assessed that domestically, the COVID-19 situation is stabilizing, but with global economic activities rapidly shrinking, it is not easy for the Korean economy to immediately rebound. He stated that it is necessary to prepare for movements in international oil prices and closely monitor the vulnerable situations of emerging countries to external shocks.

Kim said, "Growth forecasts for oil-producing countries have been significantly downgraded, and current account and fiscal deficits are expected to worsen," adding, "Economic instability in oil-producing countries and the possibility of oil money withdrawal from financial markets could act as disruptive factors for the global economy."

He also noted, "The negative impact of COVID-19 on emerging economies is likely to be deeper and longer-lasting than on advanced countries," and "According to the International Monetary Fund (IMF), more than 100 emerging countries have already applied for or inquired about IMF bailout funds." This is because emerging countries are facing unstable financial markets with rapid capital outflows, sharp currency depreciation, and reduced foreign exchange reserves, but have limited policy response capacity.

Kim added, "Anti-European Union (EU) sentiment is rising mainly in Southern European countries facing increased national debt and deteriorating bank soundness," and "There are signs that conflicts between the US and China over responsibility for the spread of infectious diseases could reemerge as trade conflicts." He analyzed that the COVID-19 crisis is emerging as a factor threatening globalization and free trade.

Kim stated that it is necessary to overcome the complex crisis where real and financial sectors are simultaneously hit and prepare for a new economic order and industrial structural changes in the post-COVID era. He said, "I would like to remind once again that the key to overcoming the national crisis is jobs, and we will make every effort to support job preservation," and "We will accelerate the creation of new jobs by discovering Korean New Deal projects."

He mentioned plans to focus on risk checks by sector, monitoring and supplementing countermeasure implementation, and preparing additional measures centered on the Economic Central Countermeasures Headquarters launched last week.

Regarding the Korean New Deal, he explained, "We will discover large-scale IT projects based on digital infrastructure and actively plan and promote various projects in fields gaining attention due to the COVID-19 situation, such as non-face-to-face medical services and online education services."

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