Finance minister says coronavirus could add downside risks to local economy

Concerns are rising about the damage the coronavirus outbreak may have on the Korean economy.
Government officials say they're monitoring the potential impact and looking at ways to support local companies.
Kim Hyesung reports.
The rapid spread of the coronavirus could add downside risks to South Korea's economy if it is not contained swiftly.
That's what South Korea's finance minister Hong Nam-ki said on Monday, adding that while the impact on the local economy has been limited for now, it is hard to predict how the virus will spread and what effect this will have.
He said there is a high possibility that the virus could slow down China's economy and negatively affect the global economy.
"The top priority for the government is to stop the spread of the virus through thorough quarantine measures to make sure there are no casualties and put an end to the virus at an early stage. We have to minimize the impact on the economy and secure Korea's economic recovery momentum."
The finance minister said various government ministries have a taskforce to monitor the on-going situation on sectors like exports, food and lodging, tourism and transport.
The government is expected to come up with measures to support exporting companies later this month.
Minister Hong also issued a warning against price-rigging of face masks, saying the government will punish those who engage in unfair trading practices as demand for face masks soars.
The economic spillover effect of the epidemic remains unknown, but according to Hyundai Research Institute, the spread of the virus could pull down South Korea's economic growth by up to point-two percentage points this year.
The 2002-2003 SARS outbreak, which also came from China, killed about 800 people and cost the global economy an estimated 33 billion U.S. dollars.
But with China now accounting for a larger share of the world economy, there are concerns that the economic impact of the coronavirus could be bigger this time.
Kim Hyesung, Arirang News.

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