President Moon Jae-in delivers a speech at a joint business report by the Ministry of Economy and Finance, the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups at Cheong Wa Dae on Feb. 17. Prime Minister Chung Sye-kyun is seen at the meeting along with the economy-related ministers. (Photo on the courtesy of Cheong Wa Dae website)

The government decided on Feb. 19 to take across-the-board steps to cope with economic consequences caused by the protracted novel coronavirus epidemic, named COVID-19, including boosting investments and consumption in late March.

The move ensued after President Moon Jae-in ordered in the previous day that extraordinary steps should be taken.

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki presided over this year’s 7th Meeting on the Economy on Feb. 19 to discuss ways to support exports and local economies, both of which have been hit hard by the COVID-19 outbreak.

As more cases of COVID-19 have been reported, some of which don’t have clear infection routes, he said the government will step up its disease control and prevention efforts.

“However, we should not be too cautious and abstain from everyday activities,” Deputy Prime Minister Hong said. “The government will announce at the end of this month a package to help boost the economy affected by the disease outbreak, and I again ask the Korean people to consume and invest as they usually do.”

Exports showed a sign of improvement in January, as average daily exports rose for the first time in 14 months, amid recovering global economies and semiconductor demand, he said. However, average daily exports dropped 3.2 percent February 1-10 amid the COVID-19 outbreak.

The drop is due both to weak demand and shortages in manufacturing supplies.

“We will discuss today emergency support for exporters, including liquidity injection on outstanding receivables, fast-track customs clearance for manufacturing supplies imports and the holding of exhibitions as scheduled to help exporters with marketing,” Deputy Prime Minister Hong said. “Supply chain management and high value added trade will also be topics of discussion here, and we will announce this week the outcomes of discussion.”

“We will provide local governments with disease control and prevention support, as well as help them boost their economies, “he said. The central government pledged up to 100 billion won for local governments, in addition to 36.7 billion won already provided to fight the outbreak.

They will also promote government procurement through private contracts for purchases such as masks and COVID-19 test kits and close government cafeterias once or twice a week to help local restaurant businesses.

In a related development, the government is conducting a full-scale probe into Daegu Shincheonji Church in Daegu, the epicenter of 14 new virus cases out of 20 cases confirmed in the Daegu and Gyeongsangbuk-do rea on Feb. 19.

The surge of virus cases shocked the affected Daegu areas and placed people on other parts of the nation on the panic over fears of spreading local epidemic. The virus outbreak has already staggered the global and Korean economies.

Korea Centers for Disease Control & Prevention (KCDC) reported that 20 more cases were tested positive for the virus in Korea on Feb. 19, bringing the total number of COVID-19 cases to 51. But the government decided to retain the current “warning level,” falling short of the final “serious level,” saying that it is early to consider it a local society infection.

Prime Minister Chung Sye-kyun said on Feb. 19 the government will provide full administrative and financial support to Daegu City in which the nation’s 31st case was tested positive for the virus on Feb. 18 and 15 more COVID-19 cases were confirmed in the Daegu area.

Prime Minister Chung toured Daegu in the afternoon of Feb. 19 and delivered the government’s steps at meeting with Daegu Mayor Kwon Young-jin and citizens.

Prime Minister Chung said it seemed to be urgent to secure public and civilian hospitals to quarantine COVID-19 cases, and initially, the government will come to aid to Daegu, and the city initially needs to seek cooperation with nearby local autonomous bodies.