ed Looming economic woes

Strategy and Finance Minister Hyun Oh-seok has decided to skip this year’s meeting of the Asian Development Bank to be held in Kazakhstan later this week. The finance ministry cited the ferry disaster and other domestic affairs as reasons for the minister’s absence, as it appears that the top economic policymaker is feeling uncomfortable about going abroad due to the national mood of sadness.

The decision is merely an instance of self-restraint that is widely gripping the nation in the wake of the April 16 sinking that left more than 300 people ― many of them high school students ― dead or missing. Yet the overly depressed atmosphere is feared to dampen domestic spending, splashing cold water on the budding economic recovery after years of a downturn.

With the nation still in shock over the Sewol tragedy, much of the country’s political, economic and social activity has come to a virtual standstill.

Travel agencies and hotel chains are taking a direct hit as schools cancel students’ field trips and municipal governments call off or postpone spring festivals. Consumers are also refraining from going outside and shopping, causing restaurants and bars to suffer sharp drops in sales.

Jeju is among the worst hit as students on the ferry were on a four-day excursion to the southern resort island. Domestic tourists to the island reportedly slipped 9 percent from April 17, one day after the disaster, to April 27, largely affected by the education ministry’s decision to stop school tours.

All this is all the more painful because the government designated May 1-11 as a special period for tourism, encouraging schools to take short breaks so that households can take family tours, as part of its plan to boost domestic consumption. Almost all events and publicity activities for the period have been halted.

For now, the prevailing view is that the tragic accident won’t deal a fatal blow to the economy. Last week, the central bank said it’s monitoring for any impact on economic growth, but it’s true the ferry sinking will affect the economy negatively. Most disturbing is that the vessel calamity will hit ― more seriously ― marginal self-employed persons such as restaurant owners.

True, all of us have to offer condolences and share the grief and sorrow with the families of the disaster victims. It’s also necessary to refrain from excessive pleasure and entertainment. But our everyday life should go on.

Of course, it’s impossible to get things back to normal in the short run, given the severity of the ferry sinking, and there is no need to do so, either. But this might be the time to resume routine consumption and normal economic activity quietly and calmly.