Vice Minister Ki Jae: "COVID-19, Beware of Economic Blue Transfer... Psychological Recovery Is Key to Economic Normalization"

Exports Continue to Decline in May... "Must Prevent Export Uncertainty from Affecting Domestic Economy"

[Asia Economy Reporter Jang Sehee] Kim Yong-beom, the 1st Vice Minister of Strategy and Finance, emphasized regarding the spread of the novel coronavirus infection (COVID-19) originating from Itaewon, "It is well known that the COVID-19 virus threatens lives, but we must be cautious not to let excessive fear turn into economic blues."

On the 15th, at the '10th Innovation Growth Strategy Review Meeting and Policy Review Meeting' held at the Seoul Government Complex, Vice Minister Kim stated, "As pointed out by a recent Harvard research report, psychological recovery of people rather than government lockdown lifting will be the key to economic normalization." He added, "We must be especially careful that the economy does not become excessively contracted due to vague fear," and said, "The government will do its best to block economic and psychological adverse effects caused by COVID-19 through all available means and execution checks."

At the meeting, discussions were held on the execution plan for the emergency employment stabilization fund, preparation for the second financial support program for small business owners, the status of policy responses by major sectors to COVID-19, and publicity. The purpose was to review and supplement various policies the government has introduced to respond to COVID-19.

Regarding the execution of the emergency employment stabilization fund, he said, "Due to the impact of COVID-19, special employment types and freelancers such as substitute drivers, private tutors, cultural instructors, and insurance planners are facing severe difficulties," and added, "They are not even enrolled in employment insurance, so despite being in a practical unemployment state, the social safety net does not reach them."

Accordingly, the government plans to provide an emergency employment stabilization fund worth 1.5 trillion won to protect vulnerable groups in the blind spots of employment insurance. Additionally, 3 million won per month for three months will be provided as livelihood stabilization funds to 930,000 special employment types, freelancers, and small business owners.

The government will start announcing the project on the 18th and begin accepting applications from the 1st of next month. The support funds are expected to be paid to recipients within two weeks of the application deadline.

Furthermore, Vice Minister Kim stated, "The government has prepared a second financial support program worth 10 trillion won for small business owners," and added, "We will promptly complete all preparations such as connecting the computer networks between the Credit Guarantee Foundation and commercial banks and establishing a non-face-to-face online application system."

The government plans to start pre-accepting loan applications for the second financial support program for small business owners from the 18th and officially begin lending on the 25th.

Regarding exports, he said, "Exports have continued to decline in May following April," and added, "We will devise additional measures to prevent export uncertainties from spreading to domestic economic activities."

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