[The Editors' Verdict] IMF and COVID-19

Having conversations with those who first stepped into society around 1998, a topic came up. Which was more shocking: the 1997 International Monetary Fund (IMF) foreign exchange crisis or the 2021 COVID-19 pandemic? There was a heated debate but no conclusion was reached. It was agreed that the IMF dealt a fundamental (livelihood-related) shock to the nation, companies, households, and individuals alike. At that time, some people around recalled receiving notices that hiring was difficult just before going to work or hearing that the company they were supposed to join had gone bankrupt. There were also those who were fired shortly after joining because they 'had no dependents.' Some remembered images of fathers who lost their jobs and children who could not find work spending winter weekdays at home.

The generation that experienced the IMF witnessed the collapse of large corporations such as Hanbo, Sammi, Jinro, Ssangbangwool, Kia, banks (16 out of 26 commercial banks collapsed), small and medium enterprises, small business owners, and self-employed individuals. The farewell speech video titled "Tears Video" by Jeil Bank, written with tears by those leaving through voluntary retirement, moved the entire nation. Those thrown onto the streets by the IMF aimlessly headed to mountains and parks. Voluntary and involuntary homeless people overflowed. Long lines in front of free meal centers became a daily sight. Extreme choices (suicides) also increased. The suicide rate (suicides per 100,000 people) surged from 13.0 in 1997 to 18.4 (8,622 people) in 1998. (It decreased to 15.0 in 1999 and 13.6 in 2000.)

The shock of COVID-19 differs from that of the IMF. The infectious disease and economic-social shocks seem to follow a path of desynchronization or asynchronization. While the anxiety and fear that 'anyone can catch COVID' are the same, few think that 'the entire country will collapse.' Instead, repeated waves and social distancing caused the collapse of domestic industries such as exhibitions, performances, movies, indoor sports facilities, professional sports, lodging, and travel, as well as small business owners and the self-employed. The COVID-19 cohort (entrance and graduation) faces uncertainty in academics, employment, and future prospects.

The IMF, symbolized by the gold-collecting campaign, ended after 3 years and 8 months, but COVID-19 shows no end in sight. An indispensable element in overcoming both the IMF and COVID-19 crises is the cooperation of the people, that is, leading public opinion and sentiment. President Kim Dae-jung, who took office in February 1998, said in his inaugural speech, "This year, prices will rise and unemployment will increase. Income will fall and corporate bankruptcies will occur one after another." He did not say he would control prices or reduce unemployment. It was an honest statement that did not hide the harsh reality ahead. He even showed tears several times during the speech. The evaluation that this speech moved the hearts of the people remains valid to this day.

On the other hand, boasting about 'K-Quarantine' has led to a strange vicious cycle of a rapid increase in confirmed cases followed by strengthened social distancing. Self-employed groups, who have been struggling in their daily lives, have risen up with large-scale rallies and even pulled out the card of collective strikes. One self-employed group said that 24 self-employed people have taken extreme measures since COVID-19. Recently, the government announced next year's economic policy direction, aiming for 'complete economic normalization beyond the crisis.' Even if the economic policy direction tends to be optimistic, it is disconnected from the situation where the lives of the grassroots are collapsing. Facing reality comes before false hope.

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