Finance Minister Hong Nam-ki predicts that the resurgence in COVID-19 cases will a major risk factor for the local economy in the second half of the year.

In a social media post Friday, Hong said the fourth wave of the outbreak that began in early July is expected to have economic repercussions, especially in the third quarter.

Though the industrial output index in June rose one-point-six percent from May, the minister said psychological indicators are down, such as consumer sentiment and business survey indexes whose July figures have slipped.

He said the fourth wave's impact on real economy indicators such as exports and credit card spending has yet to materialize, but it's regrettable that both consumer and corporate sentiment are being affected. He stressed the importance of curbing infections as quickly as possible.