Moon calls for extra budget for fighting coronavirus

President Moon Jae-in at a meeting at Cheong Wa Dae on Feb. 24, 2020 Yonhap

By Do Je-hae

President Moon Jae-in ordered some bold fiscal measures Monday, including an extra budget, to overcome the impact of the COVID-19 virus on businesses.

His remark came a day after the government raised its health alert to the highest level during an emergency meeting presided over by the President following the snowballing number of new infections.

“In order to minimize damage to businesses, increase consumption and revive the sagging local economy, a bold fiscal injection is necessary. In addition to expediting the use of reserve funds, if necessary, we should also consider drawing up an extra budget with the help of the National Assembly,” the President said during a weekly meeting with his senior aides, according to press pool reports.

“International organizations, including the International Monetary Fund (IMF), and other finance institutions have advised governments to act in order to respond to the pressing economic uncertainty from the COVID-19,” Moon said. “Many countries, including China, Japan, Singapore and Taiwan, are announcing measures to ease the economic impact. The voices of businesses, small business owners and business organization are desperate as things have gotten worse. The government should mobilize all possible policy measures to take immediate action.”

It is the first time for the President to cite the need for an extra budget since the outbreak of the COVID-19. During the Middle East Respiratory Syndrome (MERS) epidemic in 2015, the government had drawn up an extra budget of 11.6 trillion won.

Cheong Wa Dae has so far been cautious about the rising calls for an extra budget from the ruling Democratic Party of Korea (DPK). But the President has brought up the need for it as the situation has become much more severe than anyone could have imagined. The number of infections is quickly on the rise and more countries are issuing travel warnings on Korea as well as entry bans on Koreans.

Moon underlined the need to help areas where many infections have been confirmed. “In particular, we need special support for Daegu and North Gyeongsang Province, which have suffered considerably.”

In a rare move, Cheong Wa Dae invited experts on infectious diseases to join the President's meeting with his senior secretaries. This was the first time for outside experts to join the weekly meeting presided over by the President, reflecting the gravity of the situation. “The government is determined to do its utmost to tackle the double tasks of conducting quarantine work and invigorating the economy,” Moon said. He said that he will reflect the experts' suggestions in the government's quarantine policies.

Moon urged the government to do all it can to prevent the virus from spreading to other regions aside from the Daegu and North Gyeongsang Province, which have been designated as special care zones. Many infections in these areas have occurred from sites related to a minor Christian sect called Shincheonji Church. “We have to thoroughly manage and control all risk factors to prevent the spread of infection to other communities,” Moon added.