Subscribe
E-Paper
 |
| President Moon Jae-in during a Cabinet meeting on Feb. 18 Yonhap |
By Do Je-hae
President Moon Jae-in ordered the government to implement urgent measures to combat the new coronavirus Tuesday, including finding emergency funding to salvage the economy amid mounting concerns over the viral outbreak's impact on the business sector.
"The government needs to exercise boundless imagination to create policies needed to cope with the emergency economic situation," Moon said during a Cabinet meeting. "The current situation is more serious than we thought."
The President's remarks reflect grave worries over the epidemic, which originated in Wuhan, Hubei Province, China, that has dented the nation's exports and consumer demand. In particular, Moon expressed concerns about immediate setbacks in supply chains and production activities linked to China, where more than 70,000 people have been infected by COVID-19, or 2019-nCoV.
"If China's economic situation worsens, we are hit hardest," Moon said. "Right now, supply chain and production activities linked to China are being disrupted. Exports to China, the world's trading center that accounts for one-quarter of our exports, are falling sharply.
"The impact on tourism, culture, leisure and other services industries has also been severe, which is causing consumption and domestic demand to shrink significantly, and our companies and self-employed people are becoming more increasingly concerned. The virus will have a much bigger and longer impact than SARS or MERS."
Moon urged the Cabinet to prepare measures to help small businesses in particular to cope with the downturn.
"The government needs to prepare strong support measures to minimize damage to small- and medium-sized companies," Moon said. "We should review special financial aid for those companies and drastic measures to ease the concerns of small business owners regarding rent. The government needs to consider expanding incentives to boost corporate investment and more drastic regulatory reform measures."
On Tuesday, the Cabinet approved a 104.1 billion won ($87.9 million) emergency fund for quarantine efforts against the new coronavirus. The government will announce measures to help the export sector later this month.
The President has been increasing his communication with the people and businesses to hear their concerns about the epidemic. He met leaders of the nation's six major conglomerates last week and has visited various sites to reassure the people that the government is on top of the situation.
"Excessive fear and anxiety are making it more difficult for the economy," Moon said. "With trust in the government's response to the virus, we urge the people to resume normal economic activities. This will be hugely helpful for an economic recovery."
On Tuesday, first lady Kim Jung-sook visited a traditional market in Jungnang-gu, Seoul, following the President's visit to Namdaemun Market last week.
The opposition has criticized the visits as being aimed at garnering public support ahead of the April 15 general election. But Cheong Wa Dae denied this.
"We will continue to serve the people's needs regardless of the election," a senior presidential aide told reporters.
