Vice Minister Ki Jae: "COVID-19, Realization of Impact on Real Economy and Financial Markets... Full Mobilization of Fiscal Measures"

Expansion of Market Volatility and 'Contingency Plan'

Active Inclusion of 'COVID-19 Response Budget' in Supplementary Budget

[Asia Economy Reporter Jang Sehee] Kim Yong-beom, the 1st Vice Minister of the Ministry of Economy and Finance, said on the 28th regarding the spread of the novel coronavirus infection (COVID-19), "The negative impact on the real economy and financial markets is gradually materializing, so it is time to be vigilant and review all possibilities, including prolongation."

Vice Minister Kim attended the macroeconomic and financial meeting held at the Seoul Banking Hall on the same day and stated, "To maintain the momentum of economic recovery, we will first mobilize all fiscal measures available within the administration, such as contingency funds and changes to fund operation plans."

He emphasized, "We plan to actively reflect this in the supplementary budget by obtaining the National Assembly's consent to ensure sufficient fiscal support."

Vice Minister Kim continued, "With the preference for safe assets strengthening, the won-dollar exchange rate has risen, and government bond yields have fallen." He added, "In particular, stock prices, which had been on an upward trend since February, declined last week, and foreign investors' net sales of stocks have been considerable, so we are closely monitoring related trends with heightened vigilance."

He added, "Although market volatility is likely to increase for the time being, there is no need to have excessive anxiety."

He also explained, "We are monitoring the financial markets 24 hours a day, and if abnormal market volatility expands, we will respond according to the contingency plan. If concentration in the foreign exchange market increases, we will firmly implement market stabilization measures and simultaneously manage external credibility by timely sharing accurate information on government quarantine measures and economic damage minimization plans with credit rating agencies and overseas investors."