Moon to preside over new economic council on COVID-19

President Moon Jae-in speaks during a Cabinet meeting at Government Complex Seoul, Tuesday. / Yonhap

By Do Je-hae

The government will launch an Emergency Economic Council chaired by President Moon Jae-in to facilitate swift decision-making in dealing with the economic fallout from COVID-19. The rare move was announced by Moon during a Cabinet meeting, Tuesday, and comes as an addition to a recent series of strong measures to improve the economy amid rising fears of a global recession caused by the coronavirus pandemic. The first meeting will be held at Cheong Wa Dae, Thursday, according to the presidential office.

During the Cabinet meeting, Moon underlined that the current situation is even more serious than the 2008 financial crisis. “The situation is more complex because people's daily activities as well as consumption and production have been affected, and both supply and demand are rapidly shrinking. The real economy and financial markets are being hit simultaneously,” Moon said, according to press pool reports.

“The situation is aggravated by the blocking of cross-border travel imposed by many countries. Disruption in human exchanges and global supply chains could further prolong the economic fallout. This is an unparalleled economic emergency.”

Moon said the council led by the President will be one of the two pillars of the nation's response to COVID-19, along with the Central Disaster and Safety Countermeasures Headquarters, which is led by Prime Minister Chung Sye-kyun.

Undertaking the leadership of the council reflects his focus on the economy following the recent slowdown of the spread of COVID-19 infections here. “We will try to overcome the extraordinary economic situation by pooling our pan-governmental capabilities,” he said. “We will quickly deal with special measures through the Emergency Economic Council.”

Moon hinted that he will seek a new stimulus package, in addition to the already proposed 11.7 trillion-won ($9.53 billion) extra budget. “The extra budget is not the end but a beginning. Many experts say this is not enough. There are many calls for additional measures,” the President added. He also urged the Cabinet to prioritize special support for the unemployed and small business owners.

In the meantime, the main opposition United Future Party (UFP) criticized the government and the ruling Democratic Party of Korea for underlining the necessity of an additional extra budget, which it regards as a populist policy. “Ahead of the general election, the government and the ruling party are using COVID-19 as an excuse to waste taxpayers' money,” UFP floor leader Rep. Shim Jae-cheol said during a party meeting Tuesday.