PM raises urgent need to tackle coronavirus, economic fallout with extra budget

SEOUL, March 11 (Yonhap) -- South Korea's prime minister on Wednesday raised the urgent need to actively deal with economic shocks from the new coronavirus as parliament has begun to review an extra budget bill.

Prime Minister Chung Sye-kyun made an appeal at the National Assembly amid concerns that the COVID-19 outbreak is expected to deal a serious blow to the economy.

"It is more urgent than ever to reduce shocks (from the new coronavirus) on people's livelihoods and the economy and actively deal with economic downside risks," Chung said at a meeting of the parliamentary special committee on budget review.

The government submitted an 11.7 trillion-won (US$9.81 billion) supplementary budget bill last week to parliament in an effort to step up its battle against the virus and prop up the slowing economy.

Chung said the government's financial health remains good, stressing that it is time to take bold actions against the virus.

"If we do not respond (to the situation with the extra budget) now, the economic recovery would be delayed, possibly causing higher costs later," Chung noted.

Smaller merchants and businesses were hardest-hit by the outbreak amid sluggish domestic demand. The Bank of Korea recently cut its 2020 growth outlook to 2.1 percent from 2.3 percent, citing the impact of the coronavirus.

Rival political parties earlier agreed to pass the extra budget bill during the current extraordinary parliamentary session that will end on Tuesday.

"Timing is very important in (implementing) the extra budget," Chung said, calling for bipartisan cooperation in swiftly reviewing the proposal.

South Korea has reported 7,755 cases of the new coronavirus since the outbreak began on Jan. 20.

sooyeon@yna.co.kr
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