[2020 National Audit] Hong Nam-ki "COVID-19 Resurgence Limits Domestic Demand-Led Recovery"

On the 7th, Ministry of Economy and Finance Audit Held at Government Sejong Complex
"All Policy Measures Will Be Mobilized for Economic Recovery... Korea Sale Festa to Shift Online and Non-Face-to-Face"
"Monitoring and Supervision of Real Estate Market Disturbances Will Continue"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance. (Photo)

[Sejong=Asia Economy Reporter Joo Sang-don] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 7th, "The recent resurgence of COVID-19 and strengthened social distancing measures are expected to limit the recovery mainly in domestic demand."

On this day, Deputy Prime Minister Hong attended the Ministry of Economy and Finance audit held by the National Assembly's Planning and Finance Committee at the Government Sejong Complex and said, "COVID-19 has prolonged longer than expected, and uncertainty about the end of COVID-19 and economic recovery remains significant."

Deputy Prime Minister Hong diagnosed that recent COVID-19 resurgence along with external risk factors such as the US-China trade conflict are acting as sources of instability in the economy. He emphasized, "The government is taking this situation seriously and aims to respond swiftly and strategically not only with meticulous and thorough support measures to overcome the crisis but also with policy design to create future growth engines. First, the government will mobilize all policy measures for economic recovery along with thorough quarantine efforts."

Specifically, the government plans to promptly execute the emergency comprehensive livelihood and economic measures, including the 4th supplementary budget, and resolve investment obstacles to ensure that the 100 trillion won investment projects in the corporate, private, and public sectors proceed without disruption. It will also respond as much as possible to revive the corporate investment atmosphere through deregulation. Additionally, large-scale consumption promotion events such as Korea Sale Festa will be flexibly supplemented to shift toward online and non-face-to-face formats in accordance with changing conditions.

The government’s determination to eradicate speculation in the real estate market was reiterated. Deputy Prime Minister Hong said, "Real estate policies will continue to be firmly implemented under two clear policy principles: protecting actual demand and eradicating speculative demand. Along with this, consistent efforts will be made to stabilize the real estate market through monitoring and supervision of market-disturbing activities."

Furthermore, the government will accelerate the early realization of the Korean New Deal’s outcomes and the expansion of the social safety net. Deputy Prime Minister Hong stated, "By the beginning of next year, we will complete the preparation of investment guidelines, follow-up legal measures, and other tasks by the end of this year to enable the establishment and launch of the New Deal Fund. We will also strive to discover profitable and high-quality projects. Moreover, since vulnerable groups are more severely affected during crises, we will devote all efforts to strengthening the social safety net through policy measures."

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