South Korea's Industry Minister says the fallout from COVID-19 is spreading across the real economy while export conditions are looking bad.

During a meeting with the chiefs of state-run think tanks on Monday, Minister of Trade, Industry, and Energy Sung Yun-mo said despite exports shifting to positive growth in February, slowing global demand and falling oil prices could exert pressure on the domestic economy and shipments.

He said the government response should be different in this unprecedented situation and vowed to prepare for the worst scenario while exerting all-out efforts to minimize losses and revive economic vitality.

The government will look into supply chain disruptions while it diversifies and expands domestic production to minimize setbacks to output and exports. 

Policy efforts will also go toward ensuring a stable supply of crude oil.