"Prolonged COVID-19... Need to Review Extension, Modification, and Supplementation of Existing Measures"

Korea Institute of Finance, Report on 'Characteristics and Implications of Major Countries' Economic Policies in Response to the COVID-19 Crisis'

[Sejong=Asia Economy Reporter Kim Hyun-jung] Opinions have been raised that the government should consider extending, revising, and supplementing measures to respond to the novel coronavirus infection (COVID-19) crisis. Given the possibility that the global spread of COVID-19 may last longer than expected, and that major countries are also extending or revising their response policies, it is explained that additional discussions are necessary for South Korea as well.

Park Sung-wook, Senior Researcher at the Korea Institute of Finance (KIF), emphasized on the 18th in the report titled "Characteristics and Implications of Major Countries' Economic Policies in Response to the COVID-19 Crisis" that "it is time to thoroughly review the extension, revision, and supplementation of existing response policies, starting with the smooth execution of the 3rd supplementary budget (추경) passed by the National Assembly on the 3rd."

Researcher Park explained, "Economic indicators in major countries somewhat improved in May and June due to policy responses and easing of lockdown measures, but they still remain at a sluggish level below normal. Moreover, the global spread of COVID-19 has recently expanded mainly in some regions of the United States and emerging countries, so the possibility that the COVID-19 crisis will last longer than initially expected at the beginning of the year cannot be excluded."

He added, "Accordingly, discussions are underway regarding the extension or revision of response policies that were originally expected to be implemented for only a few months in major countries." In fact, in the United States, Congress recently decided to extend the application deadline for the Paycheck Protection Program from the end of June to August 8, while the United Kingdom decided to extend the employment retention scheme, which was scheduled to end in June, until October, gradually reducing the system by having employers bear part of the allowance paid to furloughed workers (equivalent to 80% of wages).

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