The South Korean economy is forecast to post negative growth for the first time in 22 years since the Asian financial crisis due to the prolonged COVID-19 pandemic.
The real gross domestic product(GDP) posted negative growth of one-point-three percent in the first quarter, and three-point-two percent in the second quarter, with the economy contracting for two consecutive quarters. In the third quarter, the economy partially rebounded with a two-point-one percent expansion, but a third wave of the epidemic in the country, and around the world, led to another falling curve.
The self-employed, most of whom operate businesses in the service sector involving face-to-face contact, were struck the hardest, while exports stagnated due to lockdowns imposed by countries around the world.
Outbound shipments are estimated to have contracted six-point-four percent on-year to total 507-point-7 billion dollars this year, indicating that exports will post negative growth for the second straight year, after they contracted ten-point-three percent last year compared to 2018. The export industry, however, is assessed to have put up a good defense by seeking new momentum through the nontact sector with products related to the so-called stay-at-home economy and the biohealth industry.
Employment was also sluggish. The number of those who found jobs in April declined 476-thousand compared to a year earlier, the biggest margin in 21 years and two months. The drop in October was 421-thousand.
The government has drawn up four rounds of extra budget totaling 66-point-eight trillion won to minimize the economic fallout from COVID-19, and introduced various financial aid package programs and stability funds worth nearly 200 trillion won for businesses battered by the crisis. A large-scale issuance of deficit-covering bonds was inevitable, causing the national debt to snowball.
The government, meanwhile, forecasts the economy to post a contraction in the one-percent range in 2020.

Photo : YONHAP News, KBS News

1. COVID-19 Pandemic: Daily Life Disrupted, K-Quarantine Put to the Test

2. COVID-19 Pandemic: S. Korea's Economic Shock

3. April 15 General Elections: 180-Member Supermajority Ruling Party is Born

4. Sino-US Row, S. Korea-Japan Discord: Diplomacy Facing Crisis After Crisis

5. Demolition of Gaeseong Liaison Office, Shooting Death of S. Korean Official: Inter-Korean Ties At A Standstill

6. Mega Free Trade Pact 'Regional Comprehensive Economic Partnership' Launches

7. Prosecutorial Reforms and Discord Between Justice Minister and Prosecutor General

8. Digital Sex Crime 'Nth Room' Incident

9. BTS and 'Parasite,' Global K-Culture Era Opens

10. Son Heung-min, LPGA: Korean Sports Excel in the Global Arena