The Bank of Korea Expects "With Corona" to Contribute to Economic Improvement in Face-to-Face Services

BOK Announces 'Current Status of Major Advanced Countries' With-Corona Policies and Economic Trends'
Expected to Aid Recovery of Restaurants and Leisure Facilities

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The Bank of Korea stated regarding the government's upcoming With Corona (gradual return to daily life) policy, "In Korea's case, with the recent vaccination rate exceeding 70%, the government plans to promote the gradual return to daily life policy starting in November, which is expected to contribute to the economic improvement of face-to-face services, similar to cases in major countries."

In the Overseas Economic Focus published on the 31st titled 'Current Status of With Corona Policy Implementation and Economic Trends in Major Advanced Countries,' the Bank of Korea explained, "Major advanced countries have gradually eased quarantine measures focusing on preventing deaths and severe cases, coexisting with infectious diseases. This shift in quarantine policy has enhanced the mobility of economic agents and significantly contributed to the recovery of consumption centered on face-to-face services in each country."

The Bank of Korea classified the With Corona policies of advanced countries into fundamental With Corona types and flexible With Corona types.

The fundamental With Corona type includes countries such as the United Kingdom, Denmark, and Sweden, which have generally steadily reduced the intensity of quarantine measures. The flexible With Corona type refers to countries like Israel and France, which, after the spread of the Delta variant, adjusted the intensity of quarantine measures mainly reflecting the increase or decrease in the number of severe patients.

As a result of the Bank of Korea's empirical analysis of the effects of With Corona policies, the easing of quarantine measures in major advanced countries significantly improved the mobility of economic agents and considerably contributed to the recovery of consumption.

The Bank of Korea explained, "Since quarantine measures were strengthened mainly in face-to-face contact facilities during the COVID-19 pandemic, the consumption recovery effect due to the With Corona policy was prominent in the restaurant and leisure facility sectors," adding, "The promotion of the With Corona policy acted as a factor that facilitated the decline in economic agents' sensitivity to COVID-19, contributing to the recovery of consumption."

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