Korea is trying its best to contain the novel coronavirus (officially
declared as COVID-19 by the WHO). In the
opening remarks of the 7th
Cabinet Meeting, President
Moon Jae-in highlighted the importance
of preemptive and extraordinary measures for both public safety and people’s
livelihoods. In the meeting it has been shared that Korean people have the
power to revive this medical emergency because Korea has world-class quarantine
and medical systems. If Korean people will follow personal hygiene guidelines ,
believe in the Government’s rejoinders, continue normal economic activities in
daily lives, economy can be rapidly recovered, the president added in the
meeting.
On the economic front, interruption to South
Korean manufactures were initially considered as temporary but delay in
production has affected seriously due to the increased numbers of virus
suspected and confirmed cases in South Korea. Delay in production have raised
concerns over expected supply chains and consumption of the consumers. Consumer
survey for Bank of Korea for the month of February 2020 showed that the
Composite Consumer Sentiment Index(CCSI) STOOD 96.9 which is 7.3 points lower
than that of January.
In the survey, consumer sentiment concerning current
domestic economic conditions was also found 12 points lower than in January, at
66, and that concerning future domestic economic conditions was 11 points down,
at 76. It is
noteworthy that Experts
cautioned about the economic impact from the virus because of the quarantine
measures kept two areas of Korea heavily affected with people staying home and
major events cancelled/delayed.
The Korean government and the people have sent
a number of supplies and funds to evacuees from Wuhan, China. It should be
noted that Wuhan city has been the epicenter of Corona outbreak. The local city
governments are also engaged in distributing hand sanitizers, masks and
donations. Evacuees
in Korea who completed their two weeks of quarantine left placards expressing
their thankfulness while leaving the quarantine facilities. However,
South Korean president Moon Jae-in has emphasized on considering emergency
steps to tackle the situation as growing
crisis from this deadly virus can bring an economic crisis because of the China reliant Korean economy.
Experts have already alarmed that
Coronavirus is going to bring slowdown of China’s growth which would further
affect its neighbors too.
[Source:
Cheong wa dae
briefing/Bank of Korea]
