People: "Overcome the Crisis First" Experts: "Restore Economic Vitality First"

Survey Results on the Second Half Economic Policy Direction by Korea Development Institute (KDI)

The streets of Myeongdong in Seoul are quiet, with notices about temporary closures related to the novel coronavirus disease (COVID-19) posted in various places. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Moon Chaeseok] The public perceives that South Korea must first overcome the economic crisis in the second half of the year, while experts diagnose that economic vitality must be restored first, according to a survey.

According to the results of a KDI survey (1,000 citizens and 362 experts) announced by the government on the 1st through the '2020 Second Half Economic Policy Direction,' the public recognized 'early crisis resolution' and 'economic vitality recovery' as key tasks for the second half.

The government plans to devote all efforts to overcoming the national crisis caused by the novel coronavirus infection (COVID-19) in the second half, while striving to build a 'leading economic foundation' to pioneer the post-COVID era.

In the first half, 98.6% of experts and 84.1% of the public responded that the economy worsened compared to last year. Experts who expect it to worsen further in the second half accounted for 63.5%, and the public 55.5%.

The public identified 'continued spread and resurgence of COVID-19' as the greatest domestic and international risk factor.

As the most urgent task to be supplemented in the second half, experts chose 'enhancing investment and export vitality' (29.7%), while the public selected 'stabilizing the livelihood economy' (21.8%) and 'job creation' (21.8%) respectively.

Among the priorities in the second half economic policy direction, the public pointed to 'early economic crisis resolution,' while experts indicated 'economic vitality recovery.'

Among the key tasks for 'early crisis resolution,' the public emphasized 'stabilizing the employment market' (31.4%), and experts prioritized 'supporting crisis-hit companies and industries' (43.1%) as the first action.

To stabilize the employment market, both the public and experts ranked 'supporting companies' voluntary efforts to maintain jobs' as the top measure.

For the key task of 'economic vitality recovery,' experts suggested 'stimulating consumption and tourism recovery' (26%), while the public proposed 'reviving regional economic vitality' (48.5%).

As a major task for stimulating consumption and tourism recovery, both experts and the public pointed to 'expanding incentives such as consumption coupons.'

For 'risk management,' both the public and experts selected 'managing quarantine risks' as the most important policy.

To manage quarantine risks, both the public and experts responded that 'complying with daily life quarantine guidelines' must be done first.

Experts emphasized that to pioneer the post-COVID era, the 'Korean New Deal' should be actively promoted (50.8%) and the economic structure strengthened (36.2%).

As a core task to expand the inclusion base, both experts and the public chose 'expanding demand-tailored jobs.'